"Deposits in Australian institutions such as banks, credit unions and permanent building societies are not guaranteed by their regulator, the Australian Prudential Regulation Authority, the Government or the Reserve Bank.
Unlike the US and Europe, Australia does not have deposit insurance whereby banks pay insurance premiums to a designated government-backed institution to guarantee all or part of their savings.
In the US, for example, banks pay insurance premiums to the Federal Deposit Insurance Corporation, a body similar to APRA.
Australian depositors do, however, have first claim over a failed bank's assets."
