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Financial Claims Scheme glossary

Account holder

An individual, body corporate, partnership, association, trust, superannuation fund, with an eligible account at a bank, building society or credit union incorporated in Australia.

ADIs

Authorised deposit-taking institutions - banks, building societies and credit unions authorised by APRA to conduct banking business in Australia.

APRA

Australian Prudential Regulation Authority

Claimant

A person or institution making a claim against an insurance policy.

Creditors

A person or institution to whom money is owed.

Deposit

Money held in an account in a bank, building society or credit union.

Depositor

A person or institution that places money in a bank, building society or credit union.

fails

Under the FCS, a 'failed' institution is one that is insolvent - that is, the institution can no longer pay its debts when they become due and payable.

FCS

Financial Claims Scheme

incorporated in Australia

Banking institutions incorporated in Australia are: Australian banks, foreign subsidiary banks, building societies, credit unions and certain other authorised deposit-taking institutions.

Insolvent

Being unable to pay debts when they are due and payable.

Levy

Fee or tax

Liquidation

The process of winding up a company by selling its assets and paying its debts, in full or in part, from the proceeds of the sale.

Policy

A contract that contains terms and conditions of a particular insurance cover (home, contents, car, etc).

Policyholder

A person or institution with an insurance policy.

Premiums

The price charged by an insurer for an insurance policy.

Unexpired premiums

An amount paid in advance for, but yet to be earned against, an insurance policy.

Unsecured creditors

A creditor who does not hold assets as collateral, which is used to guarantee the payment of a debt.

Wind up

The liquidation of a company.