Rabobank Australia Limited, the issuer of Rabobank deposits and RaboDirect deposits, is an Australian bank and an Authorised Deposit-taking Institution (ADI) which is covered by the Australian Federal Government guarantee of deposits.
Rabobank Australia Limited is prudentially regulated by the Australian Prudential Regulation Authority and subject to the Banking Act and, as a result, its depositors’ claims would rank ahead of all other liabilities of Rabobank Australia Limited.
Financial Claims Scheme
The Australian Federal Government guarantee of deposits was established for a period of 3 years from 12 October 2008 under the Financial Claims Scheme (FCS). On 11 September 2011, the Government announced a number of changes to the FCS.
The Government implemented a new permanent cap of $250,000 per account holder (the previous cap was $1 million), per ADI from 1 February 2012. This $250,000 cap is combined and therefore applicable to balances across both Rabobank and RaboDirect deposits.
As a result of the change:
- Term Deposits taken out on or before 10 September 2011 are covered at the previous $1 million level until 31 December 2012, or until the Term Deposit matures - whichever occurs sooner
- Term Deposits taken out after 10 September 2011 and rolled over, the $250,000 cap applies from the rollover date.
Further details about the coverage of the guarantee can be found on APRA website.
Are Rabobank retail deposits and RaboDirect deposits covered by the Federal Government Deposit Guarantee?
Yes. Rabobank Australia Limited, the issuer of Rabobank retail deposits and RaboDirect deposits, is an Australian bank and is covered by the Australian Federal Government guarantee of deposits.
Rabobank Australia Limited, which issues Rabobank retail deposits and RaboDirect deposits, is prudentially regulated by the Australian Prudential Regulation Authority (APRA).
The Financial Claims Scheme applies per depositor, per ADI. This means that the guarantee cap applies to the aggregate of all deposit accounts held by one person with Rabobank Australia Limited - including Rabobank Call Deposits, Rabobank Term Deposits, Rabobank Cash Management Account, Rabobank Farm Management Deposits, RaboDirect HISA, RaboDirect PremiumSaver and RaboDirect Term Deposits.
The liabilities of Rabobank Australia Limited are guaranteed by the bank's ultimate Dutch parent, Cooperatieve Centrale Raiffeisen-Boerenleenbank B.A (known as Rabobank or Rabobank Nederland).
How safe and strong is Rabobank?
As a Rabobank customer, all of your deposits are guaranteed by our ultimate parent, Cooperatieve Centrale Raiffeisen-Boerenleenbank B.A. (commonly known as Rabobank).
In terms of Tier 1 Capital, Rabobank Group is among the world’s 30 largest financial institutions. In the first half of 2012, the global Rabobank Group recorded an interim net profit of EUR 1.3 billion and our total assets stood at EUR 770 billion.
The Rabobank Group has very limited net exposure to sovereign debt in Greece, Italy, Ireland, Portugal, and Spain. As at June 2012, the Rabobank Group’s exposure in these countries was EUR 252 million (0.033% of total assets).
Rabobank Australia is part of Rabobank International, the Rabobank Group’s international arm. All deposits with Rabobank Australia (including with those deposits with its online banking division, RaboDirect) are fully guaranteed by its ultimate global parent company, Rabobank*, a guarantee which is unlimited and unsecured.
Since its establishment , all profits made by Rabobank Australia have remained within Australia and have been reinvested in the local food and agribusiness sectors.
Read more information in the Investor Relations section of Rabobank's international website.
* Coöperatieve Centrale Raiffeisen-Boerenleenbank B.A.