Sydney, 25 November: The Australian Bankers’ Association (ABA) welcomes the introduction of Commonwealth legislation supporting the Government’s guarantee scheme for large deposits and wholesale funding.

David Bell, Chief Executive of the ABA, said: “The legislation authorises the Government to make payments against its guarantee scheme. While there is no evidence any bank depositors or investors will need to call on the guarantee scheme, the legislation removes potential uncertainty around the timeliness of payment in the event of a claim.”

“It is important the legislation is passed quickly, avoiding delay to the guarantee scheme’s scheduled commencement on Friday (28 November 2008). Speed of passage through Parliament is a priority for banks.”

“The ABA will continue to work cooperatively with the Government on issues related to the guarantee scheme, if any arise.”