The Minister for Financial Services & Regulation, Joe Hockey, today launched a new bank for rural Australia called Elders Rural Bank.
"This is Australia's first bank of the 21st century," the Minister said.
"Elders Rural Bank is a valuable addition to the financial sector and reinforces the Government's commitment to rural and regional Australia."
Elders Rural Bank is a joint venture between Bendigo Bank, Australia's only regionally based bank and Futuris Corporation Limited (Elders Limited's parent company).
"A banking licence means Elders Rural Bank can now take deposits. This means cheaper funds and therefore, cheaper loans to rural Australians."
Before obtaining a banking licence, the joint venture operated as Elders Rural Services Limited, providing specialist rural finance through Elders' branches and agencies.
Built on this platform, Elders Rural Bank will add around 150 extra banking outlets to rural Australia and will be supported by the systems and operational expertise of Bendigo Bank.
Elders Rural Bank is 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.
"At a time when rural and regional people are concerned about their access to banking, Elders Rural Bank have moved to offer new services and financial products under the Government's policies to increase competition.
"There's no doubt that a bank targeting primary producers and rural communities will be warmly welcomed in country Australia.
"Better still, Elders Rural Bank promises to put those investments back into the communities from where they came, helping to further renew non-metropolitan towns and businesses."