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Bendigo and Adelaide Bank Limited (ASX:BEN) has inked a deal with four credit unions to create a new banking alliance.
The regional lender has co-launched what it describes as a new banking model with the credit unions including AWA, BDCU, Circle and Service One.
Under the deal the credit unions’ loans and deposits will be transferred to Bendigo Bank while the reserves will remain wholly member-owned.
Bendigo Bank will become the approved deposit-taking institution and will assume responsibility for compliance, systems and balance sheet management.
The deal still needs to score backing from 75 per cent of members voting at the respective credit unions' annual general meetings and approval from the Australian Prudential Regulation Authority and Treasurer Joe Hockey.
Bendigo and Adelaide Bank reported a net profit of $372 million in the 2014 financial year.
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