The Australia Deposit Guarantee Scheme (DGS) is a financial safety net that protects depositors of banks, building societies, and credit unions in the country. This scheme is designed to instill confidence in the stability of the financial system and to safeguard the savings of individuals and small businesses. The need for deposit insurance arises from the potential risk of financial institutions facing difficulties, such as bankruptcy or insolvency, which could lead to a loss of deposits. The DGS helps to alleviate this concern by ensuring that depositors can access their funds up to a specified limit, thereby reducing the likelihood of bank runs and financial panic.
In Australia, the Deposit Guarantee Scheme is administered by the Australian Prudential Regulation Authority (APRA), an independent statutory authority responsible for regulating and supervising the financial sector. The DGS covers deposits held in Australian-owned banks, foreign subsidiary banks, building societies, and credit unions. Under the scheme, deposits are protected up to AUD 250,000 per account holder, per financial institution. This means that if a financial institution faces difficulty, the government guarantees to repay the account holders their deposits up to this limit.
The organizational structure of the DGS administration in Australia is primarily overseen by APRA, which falls under the jurisdiction of the federal government. APRA’s board consists of a chairperson, two deputy chairs, and up to four other members, all appointed by the Treasurer. The board sets the overall strategic direction and is responsible for making key decisions and ensuring effective oversight of the organization. The day-to-day management of APRA is handled by the executive group, which comprises the chief executive officer and other senior executives responsible for various functions such as policy and advice, supervision, risk, and operations.
If you require further information or assistance regarding the Deposit Guarantee Scheme in Australia, you can reach out to APRA using the following contact information:
Australian Prudential Regulation Authority
GPO Box 9836 Sydney, NSW 2001 Australia
For inquiries specific to the Deposit Guarantee Scheme, you can visit the APRA website and navigate to their “Protecting Your Deposits” section.