Australian banks - safe?

Yes ST George seems like very low risk as well

Cheers

Hello
My first post on this excellent site, regarding our banks, are our savings say insured against loss or insolvency for what ever reason, like banks in the UK were a depositer is covered up to 35 thousand pounds per banking group, does the Aussie banking system cover our deposits our should I say, does the government???
Everybody on this site has seen the UK Government nationalize Northern Rock and now Bradford & Bingley because of there debt levels,
Just watching what is going on overseas and curious do we similar Insurances or Government backing, somebody here on the forum should know?


Cheers Jules

That's great! cause my loan is with the CBA anyway..

unfortunately the government doesn't insure savings.. I used to believe that banks were insured but credit unions and building societies were not.. but I was surprised to learn that your money isn't safe in a bank either.

essentially you take on the business risk of the bank, yet get no return from them.

Thanks crc-error
For the quick response
Looks like were on our own, so the Aussie banks could still be involed with the credit crisis overseas, and you the saver lose all the money???
Thanks
Jules

you may as well buy the bank, at least you will share in its profits! if the bank karks it, then both investors and depositors loose anyway..

Jules

I am sure that in the unlikely scenario where an Oz bank is about to go under
our Gov will intervene and bail it out.

The US, UK, Germany, Belgium have done this recently with some banks or mortgage providers.

Such action should not come to us as a surprise and it's VERY UNLIKELY that we will need to go down this path because the majority of our banks are not exposed much to the US and they are still making billions...

Cheers

so isn't it better to buy the shares?

Always buy your straw hats in the Winter - Bernard Baruch

Thanks BV and crc
I think the poor folk in the UK would have been shocked to learn that it was happening to them, and luckily the Government stepped in
They to believed that there banks were making squillions !!!! or they were led to believe so
Maybe a good time to buy some financials???
Cheers Jules

long term why not?