Home News How a Private Vault Secures Your Assets From the Bank Bail-In Law

How a Private Vault Secures Your Assets From the Bank Bail-In Law

872
0

The passage of the Bank Bail-In Law in February, 2018 via a voice vote left many financial analysts and experts wary of its ramifications for all Australians; and for good reason.

In this article, we explore the Bank Bail-In Law, discuss why it is important to seek an alternative separate to the banking system, and briefly discuss how a private vault secures your assets from the Bank Bail-In Law.

The Bank Bail-In Law at a Glance

The Financial Sector Legislation Amendment (Crisis Resolution Powers and Other Measures) Bill 2017 or the Australian Bail-In Law gives the Australian Prudential Regulation Authority (APRA) “crisis powers” allowing it to, among other things:

1. Secretly step in and run distressed banks;

2. Bail-in distressed institutions using the creditors of the bank instead of using taxpayers’ money filtered by the government;

3. Confiscate and write off certain types of bonds and hybrid securities;

4. Confiscate cash savings of self-managed super funds (SMSFs).

This puts depositors in a compromised position should banks in Australia come to be in crisis. Moreover, despite the existence of the government’s Guarantee Scheme and the depositor’s $250,000 guarantee under the Financial Claims Scheme, these are currently inactive and can only be activated by the Government at their discretion.

What’s more, if you store assets in a bank-operated safe deposit box, there is no guarantee that your valuables are safe, as the government has proven with Bank Bail-In Law to amend and pass legislation without warning. There’s no telling whether or not what happened in Cyprus in 2013, where the banks confiscated the deposits of clients, will also take place in Australia. Most seem to believe that it is only a matter of time.

Read the whole article here

LEAVE A REPLY

Please enter your comment!
Please enter your name here