Asset Finance gives up Govt guarantee
Feeling flush with cash and confident with its business model, the finance company's managing director Clive George said if it stays in the scheme, it will essentially being paying a premium twice and that remaining under the government's protection will limit its ability to find alternative sources of funding.
"By clearly stating our intention to leave our current scheme and not join the extended scheme, we hope depositors will have better transparency over our strategy and be able to make better informed decisions about the investments they are making," George said. "We've got a sustainable business model, and we know what we're doing."
As more deposits collected by Asset fall outside the guarantee's term, the rationale to stay with it dwindles, he said.
In August, Finance Minister Bill English extended the scheme another 14 months to December 2011, bringing the guarantee broadly in line with Australia's.
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