Although Australia has only had an explicit deposit insurance scheme since 2008, it has had depositor protection since 1959 and has always had depositor preference.

Question

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Australia introduced the Financial Claims Scheme (FCS), which provides depositor protection up to $250,000 per account holder per ADI (Authorised Deposit-taking Institution), in 2008. However, since 1959, Australian depositors have been protected by the Australian Government Guarantee Scheme (AGGS) which provided unlimited protection to depositors until 2012. Furthermore, Australia has always had depositor preference, which means that in the event of a bank insolvency, depositors have priority over other unsecured creditors in the distribution of assets.

Although Australia Has Only Had an Explicit Deposit Insurance Scheme