Are the Banks Going to Collapse?

Hi Scott,

Do you think any of the banks could collapse? I've heard people saying we should remove our savings. Won't that make their closure more likely? What's your advice? 

Brad

Brad,

I’ve been getting this question a LOT this week. It’s actually quite understandable in the current environment where people are being tasered for toilet rolls. However, the answer is ‘no’, I don’t believe the banks are going to collapse. And even if one did, the Government stands behind them with its $250,000 guarantee on authorised deposit-taking institutions. So there is no need to start stashing your cash alongside your toilet rolls. 

Scott