The Minister for Financial Services & Regulation, Joe Hockey, today announced the granting of a banking authority to a financial institution that will provide Australians with low-cost banking services.
Members Equity Pty Ltd will operate in five product areas: home loans; personal loans; saving accounts; credit cards; and a basic business banking package.
Members Equity is a 50:50 joint venture of AXA Asia Pacific Holdings and Industry Fund Services. The banking authority was granted by the Australian Prudential Regulation Authority under Section 9 of the Banking Act (1959).
The bank will be authorised to formally start operating on 23 July 2001.
"I welcome competition into the Australian banking market, especially a financial institution that uses e-commerce technology to give consumers access to low-cost banking services," the Minister said.
Members Equity follows the establishment last year of Elders Rural Bank which set up 150 new banking branches in rural Australia.
Elders Rural Bank was the first company launched under the Government's newly liberalised conglomerates regime to have a substantial equity association with a group engaged in non-financial activities.