CANBERRA, Australia (12/30/10)--Small credit unions in Australia are lobbying for changes in terminology that would include the words "banking," "bank" or "banker" in regulations so they could compete with big banks.
Financial institutions' regulator, the Australian Prudential Regulation Authority (APRA), has called for comments on using the term "bank," according to The Advertiser (Dec. 29). APRA's approval is required for financial businesses to use the terms.
Abacus-Australian Mutuals, a credit union and building society association that is a member of the World Council of Credit Unions, is advocating the change. Abacus CEO Louise Petschler said "banking" should become part of the regulatory language.
The organization supports regulated financial institutions being allowed to market themselves as "mutual banks."
Credit societies, similar to savings and loans, may use "banking" to describe their business. However, only institutions with at least $50 million in special capital can use the term "bank" or "banker" in their business names. (CUNA News Now)