Credit Unions and Building Societies Unite to form "Abacus"
01 July 2006
Australian credit unions and mutual building societies have united to protect choice and competition in banking through a new industry association: Abacus – Australian Mutuals, the Association of Building Societies and Credit Unions.
Collectively, mutuals are the biggest player in Australian banking after the big five banks.[1] Credit unions and mutual building societies have 4.5 million members and total assets of more than $50 billion dollars.
Abacus was established on 1 July 2006 with 135 member organisations, representing the majority of credit unions and mutual building societies. It has been formed in a joint venture by the Credit Union Industry Association [2] (CUIA) and the Australian Association of Permanent Building Societies (AAPBS).
Abacus General Manager, Adrian Lovney, said the sector had united at a time of high competition and increasing focus on social responsibility, value for customers and an extremely competitive market.
“Abacus draws together the great co-operatives of Australian banking, a strong and diverse industry with extremely high customer satisfaction and a natural community focus,” Mr Lovney said.
“Every member of Abacus is a mutual. This means they are owned by and run for the benefit of their members, rather than focusing on profit for external shareholders.
“A strong and viable mutual banking sector is essential to ensure choice and competition in banking in Australia.”
Abacus – Australian Mutuals will be a strong voice for mutuals in public policy debates, working to ensure that the interests of millions of Australians are properly considered by governments and regulators.
Mr Lovney said there are a number of regulatory and legislative challenges facing the industry, including proposed new anti-money laundering laws and new prudential regulations, such as the Basel II Capital Accord.
“Abacus will work to ensure that regulation is proportionate, delivering effective protection for consumers while supporting choice and competition,” Mr Lovney said.
The new body will build on existing investments in compliance advice, research and fraud prevention for its members. Abacus will continue to champion the role of credit unions and building societies in social responsibility, financial literacy and community banking.
For more information:
Julie Sheather
Senior Adviser – Media & Public Affairs
(02) 8299 9024; (0409) 514 643
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[1] Based on on-balance sheet assets as at December 2005.
