How Vault Facilities Protect You from the Bank Bail-In Law

Many financial analysts and professionals were concerned about the repercussions of the Bank Bail-In Law's passing by voice vote in February 2018, and with good reason.

We'll look at the Bank Bail-In Law, why it's important to look for an alternative to the banking system, and how a private vault protects your assets from the Bank Bail-In Law in this article.

A Quick Overview of the Bank Bail-In Law

The Australian Bail-In Law, also known as the Financial Sector Legislation Amendment (Crisis Resolution Powers and Other Measures) Bill 2017, grants the Australian Prudential Regulation Authority (APRA) "crisis powers" that empower it to do things like:

1. Infiltrate and administer bankruptcies in secret;

2. Bail-in troubled banks using the bank's creditors rather than taxpayer money filtered through the government;

3. Confiscate and write off certain types of bonds and hybrid instruments; 4. Confiscate self-managed superfund cash savings (SMSFs).

This puts depositors in jeopardy if Australian banks experience a financial crisis. Furthermore, the government's Guarantee Scheme and the depositor's $250,000 guarantee under the Financial Claims Scheme are both currently inactive and may only be activated by the government at their discretion.

Furthermore, there is no guarantee that your possessions will be safe if you place them in a bank-operated safe deposit box, since the government has demonstrated through the Bank Bail-In Law that it can change and adopt legislation without warning. There's no way of knowing whether what happened in Cyprus in 2013, when banks confiscated clients' deposits, will happen in Australia. The majority of people appear to feel that it is only a matter of time.

Concerns about Bank Bail-In Statutes

At its core, the bill brought Australia into compliance with the Bank of International Settlements' (BIS) bail-in agenda, which was agreed to at the 2014 G20 Summit in Brisbane, Australia.

According to the Huffington Post, the bill's passage "may have been the day deposits died as money," because bank accounts and pension funds are now at risk of being wiped out and sacrificed if a major financial firm fails. Though the warning signs have been obvious in recent years.

"One of the key lessons of the difficult negotiations over bailing out (or, more appropriately, in) Cyprus's banks is that deregulating organisations with an implicit or explicit state guarantee is a lousy idea," Naked Capitalism reported in 2013 in the aftermath of the Cyprus financial crisis. You've simply given them permission to gamble with the money of the general public."

Individuals and organisations from all around the world have criticised the idea of transforming depositors' funds into capital, including your savings as an everyday depositor. "A critical aspect of what the bail-in scheme is intended to do," according to Barnabyisright.com, "is to prioritise the payment of banks' derivatives obligations to each other, ahead of depositors." To put it another way, it's about robbing the public's bank accounts..."

Bank Bail-In vs. Private Vaulting

While the combination of historically low interest rates and returns on bank accounts, as well as the banking system's very dangerous and compromised structure, is alarming, there is some positive news. The most important choice you have is to put your money to a private safe deposit box to secure your investments.

With the emergence of digital technology such as online cloud storage systems and cryptocurrency, you may wonder why you need a private safety deposit box to preserve, protect, and grow your wealth. It's worth noting that these private service providers provide multiple layers of cutting-edge security, faster transaction times, theft and damage insurance, and anonymous safety deposit box rentals.

Private vaulting facilities, unlike financial institutions such as banks, provide better security for the valuables you've worked so hard to obtain. Because these facilities are not governed by the government, they are exempt from laws such as the Bank Bail-In Act. This means that any fiat currency, precious metals like gold and silver, family heirlooms, and other valuables you store in these private facilities are safe.

What's your best bet?

Private Vaults Australia (PVA) is happy to offer secure storage that is completely separate from the financial system today. Contact PVA or read the PVA blog for more interesting news, suggestions, and ideas to guide you on how a private vault protects your assets against the Bank Bail-In Law.