Feds may nurture CUBS and regionals
The Age today took a stab at predicting the contents of the banking policy package being prepared by the federal government, and found a strong theme of support for credit unions and building societies in the plan.The newspaper reported that the policy package, expected to be made public in the next week or two will include:* extending the government guarantee on wholesale funding for credit unions, building societies and regional banks "on a limited basis".* further direct investment in pools of home loans through the Australian Office of Financial Management.* expanding the use of Australia Post branches for credit union deposits and withdrawals.The Financial Review reported that there may be further tax breaks on interest on deposits earned from credit unions and building societies.