NON-BANK financial institutions are keen to distance themselves from the troubled Banksia Financial Group.
The collapse of the debenture issuer under the cloud of a $650 million debt devastated thousands across regional Victoria.
Gippsland Secured Investments managing director Glenn Sanford said while it was not connected with Banksia, Banksia's demise was of concern but any wider implications for the industry would only become evident over time.
"The effect so far on us has been minimal," Mr Sanford said.
"Whilst we understandably have had some inquiry, given the news coverage, we think people know how we operate," he said.
"When this sort of thing happens, it's human nature for people to reflect on their finances, and there's bound to be some who question the other non-banks.
"We're a separate, independent business and we think our clients know that," he said.
Goulburn Murray Credit Union general manager Rene Deen said the Banksia collapse was "heartbreaking", but stressed that GMCU was an Australian Prudential Regulation Authority-regulated institution.
"GMCU members have shown an appreciation of a strongly regulated and government-guaranteed institution, and are staying with their local credit union that they happen to own," Mr Deen said.
"Government or ASIC consideration has to be given to how any institution that is not a credit union, building society or bank is regulated and how depositors/investors are protected," he said.
"Institutions like Banksia may all have to come under the APRA umbrella."
Australian Bankers Association chief executive Steven Munchenberg said the Banksia collapse highlighted the importance of understanding the risks associated with different types of investments.
Victorian Farmers Federation president Peter Tuohey (pictured) said the collapse was a timely reminder not to "put all your eggs in one basket".
"I think this will be a bit of a wake-up call," he said.
