Teachers Credit Union Turns Into a Bank

Today, the Teachers Credit Union has officially become Teachers Mutual Bank. It joins the ranks of other mutual companies that can now use the term ‘bank’ in their official name. 

Teachers Credit Union is the country’s third largest. Now that it is officially a mutual bank, it becomes Australia’s sixth mutual bank. The transformation came after prudential regulators approved the move for mutuals. 

Steve James, chief executive of Teachers Mutual Bank, said that more mutuals are expected to become banks this year. More borrowers are also expected to patronize mutuals due to increasing dissatisfaction over the big four banks. 

James added that the entry of mutuals in the industry will provide a better alternative. Not only do mutuals offer better mortgage deals, they also offer the same safety and security of the regular banks. 

Signs are optimistic for Teachers Mutual Bank. Since it transitioned to a mutuals bank, it has received a significant increase in customer inquiries from customers who are looking to refinance their own homes. 

Borrowers switching from the big four banks to Teachers also grew 85 percent from December to January. In February of this year, switching increased another 21 percent. James said the bank is poised to lend more loans this year. 

As of June 30, 2011, As of Teachers posted $3.5 billion in assets and $2.4 billion in home loans. Standard & Poor’s has rated Teachers Mutual Bank with a triple-B plus credit rating. 95 percent of Teachers’ funding from retail deposits. 

Teachers Mutual Bank also has 156,000 members nationwide.

Tagged banks, Steve James, Teachers Credit Union