Bendigo and Adelaide Bank welcomes even competition on deposits

Bendigo and Adelaide Bank has welcomed news that it will be able to compete for deposits on the same basis as larger competitors in the Australian banking sector.

The news comes after Federal Treasurer Wayne Swan announced the end of the Federal Government Guarantee on large deposits – effective from March 31, 2010.

According to the Managing Director of Bendigo and Adelaide Bank, Mike Hirst, removal of the Guarantee would enable the bank to complete clearly on the basis of service and value.

“The removal of the Government Guarantee on large deposits means our customers can once again experience the market leading-service from Bendigo and Adelaide Bank without temporary market forces distorting the price they can receive,” Mr Hirst said.

“In particular, the councils and large businesses that may have felt compelled to chase lower-cost guarantees at larger banks can return safe in the knowledge that market conditions are returning to normal.

“The removal of the Government Guarantee is further evidence that the Australian financial services sector has emerged from the global financial crisis in good shape,” Mr Hirst said.

Bendigo and Adelaide Bank has not used the Government Guarantee on Wholesale Funding to raise funding in international markets.

“We have been able to provide a strong alternative to the major banks through this period with the fantastic support of our large and loyal customer base,” Mr Hirst said.