CUFSS Limited has weathered its unviable years, with the board and CUFSS’ 35 members looking on the bright side.
“The last financial year delivered an important milestone for CUFSS as we welcomed Bank of us as our first new member for many years,” chair David Taylor told members at the recent AGM.
“Discussions are also well advanced with several other mutual ADIs who are actively considering joining the CUFSS support framework.
“The potential to further expand the CUFSS membership, and the positive recognition received both from APRA and the RBA about the importance of the CUFSS system, provides a dramatic turnaround from the situation in 2016 when then was doubt about the future sustainability of the CUFSS support model.”
For several years CUFSS’ directors and its auditor had highlighted a “going concern” qualification in the annual report.
“As noted in last year’s annual report, the risks and challenges arising from the Covid Pandemic provided a strong focus on the collaborative benefits that arise from participation in CUFSS,” Taylor said.
“CUFSS worked extensively with its member ADIs, APRA and the RBA on the most appropriate way to further strengthen the CUFSS system and those efforts culminated in APRA and the RBA supporting important changes to the APRA-certified Industry Support Contract.”
The new funding arrangements - in the form of “Special Loan Facilities” via the RBA – “have enabled a significant expansion of the aggregated funding pool that can be drawn upon in times of need,” Taylor said.
“This expansion of the CUFSS support framework is the most significant change made to CUFSS since its establishment 24 years ago when mutual ADls first became subject to the same regulatory framework as banks.”?