Bendigo and Adelaide Bank details Great Southern loan exposure
Bendigo and Adelaide Bank has told the market it is exposed to more than 8,000 loans given to investors in Great Southern.
The bank said while it had no direct exposure to Great Southern or any of its subsidiaries, it had lent money to around 8,200 customers who had invested in managed investment schemes offered by Great Southern.
These loans, granted over the past six years, are full-recourse to the borrowers, the bank said. The average loan size is $75,000, and the borrowers are from across Australia.
The bank said the obligations of the borrowers had not been changed as a result of Great Southern entering receivership last week. However, Bendigo and Adelaide Bank said it would “engage with the relevant parties” to find any possible steps to protect both its interests and those of its customers.
Yesterday, Adelaide Managed Funds, a subsidiary of Bendigo and Adelaide Bank, told investors that one of its trusts was exposed to the loans given to Great Southern investors.
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