Australian bank liquidity regulations are continuing to tighten, adversely affecting access to cash and the ability of SMSFs to earn the same returns from bank deposits as individuals.
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The government guarantee on deposits has finally been legislated and based on information released by APRA you’d be forgiven for assuming that superannuation bank deposits would be covered. Not necessarily.
The nation’s savings are in superannuation and the nation’s funding needs are in the banks. Yet the regulators and the new liquidity rules make it even more difficult for the two to get together, with another free kick to SMSFs.
* APRA has told deposit-takers they must implement a Single Customer View regime before 1 January 2014, to prevent multiple coverage under the government guarantee.
* Better and cheaper availability of wholesale funding for major banks will reduce retail term deposits rates, as CBA takes its foot off the gas.
The sad fact is the government guarantee on deposits does not apply for individuals investing in deposits offered by public superannuation funds.