ME Bank Limits Customer Mortgage Redraws, Shocking Customers
Customers who went to withdraw money from their contracted redraw facility on their mortgage with ME Bank just over a week ago had a rude shock. Their terms had suddenly changed, and their access to cash stymied. ME Bank, a bank owned by Industry Super funds went into damage control .
Dr Paul Mazzola Lecturer in Finance at the University of Wollongong Business School gives an insight into what has happened so far, how a run on a bank could start, and the safety net that the Reserve Bank gives us in difficult times.