QT Mutual Bank finds a wider market

In the 12 months since it received approval to become a mutual bank, Queensland Teachers' Mutual Bank has succeeded in reaching a wider market than it did when it was a credit union.

QT Mutual Bank's chief executive, Mike Murphy, said one of the bank's objectives was to arrest a decline in membership.

Murphy said: "We are getting more inquiries now, especially online, and we are seeing some growth.

"The idea of a credit union or a building society is not well understood.  The big advantage for us is that the name change creates a perception that we have the strength to be called a bank."

The next step in QT Mutual Bank's development was to apply for a credit rating, which it did three months ago. Murphy said the BBB-rated institution was looking at opportunities to raise funds through an issue of residential mortgage-backed securities or floating-rate notes.

Murphy said QTMB has a strong balance sheet, with a 17 per cent capital ratio.

Today, QTMB is holding a function in Brisbane, to relaunch its relationship with the Queensland Teachers' Union.

Murphy said: "We have had a partnership with the Teachers' Union and TUH (Teachers' Union Health) going back 30 or 40 years. We would go out to the teacher training colleges together and sign up new teachers.

"That activity fell away as teacher education moved to the universities. Our relationships with the universities were not as strong.

"What we are aiming to do is revive that activity and increase our teacher member numbers. We do not have a formal agreement with TUH, but we are still close."

Queensland Teachers' Credit Union stopped being a bonded credit union in 1985. However, 60 per cent of QTMB's membership is teachers.