Abstract
Following large-scale closure of bank branches by the major retail banks in the 1990s credit unions and community banks have been active in re-establishing branches in communities across Australia. Credit unions and community banks promote themselves as offering a very different kind of financial service: one much more focused on meeting the needs of local communities. On the face of it, their service to these communities appears to be motivated by very similar objectives. However, examining their current practices against the backdrop of their different histories reveals important differences in their approach to helping communities help themselves.
Acknowledgements
The author would like to acknowledge the research assistance of Ms Anja Kirsch and the helpful comments of the anonymous referees. This research was funded through a University of Sydney School of Business Research Grant.
Notes
The ‘Big Four’ are the Commonwealth Bank of Australia, National Australia Bank, Australia and New Zealand Banking Corporation and Westpac. A recent report by the Australian Prudential Regulatory Authority (APRA Citation2006) categorised St George amongst the major banks, making it now the ‘Big Five’.
Mutual shares are shares which investors may sell back to a society at par value, and, the society must agree to buy them back, whereas, permanent, paid-up shares were not withdrawable from the society and could only be disposed of to an outside buyer (Hewat Citation1992, 48).
In 1978, Bendigo Building Society merged with another Bendigo based building society, Eaglehawk. This merger saw the beginnings of an expansion of Bendigo Building Societies branch presence outside of Bendigo to Melbourne and other parts of Victoria. It was also the first of a number of mergers with other building societies and securities companies, including; Sandhurst (1983), Sunraysia (1985), Capital (1992), Compass (1992), Sandhurst Trustees (1991), National Mortgage Market Corporation (1995), Monte Paschi Australia Limited (1997), financial planner Worley Securities (1997), IOOF Building Society (1999), debenture company Victorian Securities Corporation (1999) and Queensland's First Australian Building Society (2000) (Hewat Citation1992).