Types of banking institutions covered under the Financial Claims Scheme
The Financial Claims Scheme (FCS) covers those banking institutions incorporated in Australia and authorised by APRA that are:
- Australian banks
- foreign subsidiary banks
- building societies
- credit unions
- certain other authorised deposit-taking institutions.
See the full list of banks, building societies and credit unions on this website that are covered under the FCS.
The FCS does not apply to the following institutions:
- branches of foreign banks in Australia
- foreign branches of Australian banks (located overseas)
- finance companies and other financial institutions that are not licenced (authorised) by APRA.
Different banking businesses under a banking licence
Some banks, building societies or credit unions may operate multiple banking businesses with different trading names under the same banking license. However, under the FCS the deposit protection of $250,000 applies per account holder to deposits under each banking license, which includes deposits with any other banking businesses with different trading names that operate under a banking license. Therefore, if you have deposit accounts with a bank, building society or credit union and with any other banking businesses they operate with different trading names, you'll need to add all these deposits together to calculate the amount that is covered under the FCS for that particular institution (or banking license).
Bank A is licenced by APRA under the name 'Bank A'. Bank A also operates a banking business trading under the name 'Bank B' under its banking license. John has two savings accounts of $200,000, one with Bank A and another account with Bank B. If Bank A failed and the Australian Government activated the Financial Claims Scheme, John's total amount of $400,000 would only be partly covered (up to the $250,000 FCS limit). This is because the FCS applies to each banking license, which in this case covers both Bank A and Bank B under the same license. Therefore, John will have a maximum of $250,000 protected under the FCS. However, John may be able to recover his remaining $150,000, or part of it, in the liquidation of Bank A, depending on what assets are available.
For further information, including more on the liquidation process, go to the Banking FAQs.