the planet Achieving scale through organic growth and mergersEnsuring supply chain/
bankmecu held $2,743.3 million in customer deposits. We lent 88.4% of these deposits to other customers, in accordance with our Responsible Investment and Lending Policy. The policy ensures we will not knowingly use customers’ funds to finance any purpose that is irresponsible, unethical or detrimental to the community or the environment. We invested the remaining 11.6% of deposits and accumulated customer reserves in the Australian money market, in accordance with APRA requirements for ADIs.
bankmecu holds shares in its subsidiary companies and is a shareholder in its two major service suppliers. These are Cuscal, which provides wholesale and transactional banking services; and Data Action, which supplies core banking and data network facilities. We have another equity investment in MyState Financial, an ADI based in Tasmania that also operates in Queensland. All shares in our portfolio are subject to the Bank’s Responsible Investment and Lending Policy.
bankmecu’s responsible banking approach to credit and conservative lending guidelines meant our credit quality remained above banking industry standards. Credit quality compares delinquent loans 30 days or more in arrears with our total loan portfolio. The Bank’s rate was 0.31%, less than our budget of 0.50% and the mutual industry average of 0.81%. It was also considerably lower than figures in 2010 (0.46%) and 2011 (0.51%). However, the rate rose by 6.9% in 2014 from 0.29% in 2013, driven by changes in customers’ circumstances, including becoming unemployed. Most delinquent loans are mortgage secured.
In line with legislative requirements for recovering bad debts, bankmecu helped customers manage credit responsibly and supported customers experiencing financial hardship. Our Credit Integrity team varied more than 100 loan accounts to assist customers experiencing hardship in 2014.