Depositors with LLL Australia can be assured their funds are secure, despite the uncertain state of the world financial markets due to the COVID-19 pandemic.
That’s the word from LLL Board Chairperson Graeme Huf and LLL CEO Allen Kupke.
‘We thank all depositors for their continued support of the church through their LLL deposit accounts’, Mr Huf said. ‘We assure you that the security of your deposit is of paramount importance to the LLL Board and our policies will continue to reflect this. We are responding to the COVID-19 crisis through increased engagement and support to our borrowers and by being ready to assist our church as needed.’
Mr Kupke explained that the LLL did not operate in commercial investment and lending markets like most financial institutions, and ‘therefore does not carry the same exposure and risk’.
‘The LLL does not make any speculative investments’, Mr Kupke said. ‘No investments are made in the share market or other similar tradeable securities, therefore, the LLL does not have any exposure to share market volatility such as is being experienced at present in Australia and overseas.
‘And, as the LLL is an Authorised Deposit-taking Institution (ADI), LLL depositors are protected by the Australian Government Financial Claims Scheme.’
As the first charitable ADI in Australia, LLL is regulated under the Banking Act and by the Australian Prudential Regulation Authority (APRA).
Mr Kupke is set to retire in September this year after guiding the LLL through a period of change modernisation, including the introduction of online bill paying, becoming a company limited by guarantee, becoming an ADI, and launching a new app for mobile banking. The LLL Board has launched a search for a new CEO. The LLL will turn 100 next year and has a depositor balance of more than $1.2 billion.