Interest in mutual capital interests in beginning to take off, with ADIs planning to update their constitutions at annual general meetings.
Gateway Bank, Newcastle Permanent Building Society, Coastline Credit Union Illawarra Credit Union are among those putting proposals to members.
Gateway “has no current plans to issue MCIs; however the Board and Gateway management consider it is important to take advantage of the Mutual Reforms now to update Gateway’s Constitution,” the board told members.
“This will give Gateway the flexibility to issue MCIs should it be necessary or desirable to do so in future – whether for regulatory capital or to seize business opportunities.
“Any decision to issue MCIs would need to be approved by the Board of Gateway who would need to determine that this decision was in the best interests of Gateway and our Members.”