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Reducing barriers to new entrants to the banking sector - removing restrictions on the use of the term 'bank'

17 July 2017 | Exposure Draft

The Government announced in the 2017-18 Budget that it will act to reduce regulatory barriers to entry for new and innovative entrants to the banking system, by lifting the prohibition on the use of the word 'bank' by authorised deposit-taking institutions (ADIs) with less than $50 million in capital.

This consultation seeks stakeholder views on the draft Treasury Laws Amendment (2017 Measures No. 8) Bill 2017: amendment to section 66 of Banking Act (the draft Bill), which implements this measure. A draft explanatory memorandum is attached to assist readers in understanding the draft Bill.

Consistent with the Budget announcement, the draft Bill would amend the Banking Act 1959 to:

  • allow any ADI to use the word ‘bank’ in relation to the ADI’s financial business (except in exceptional circumstances), replacing the $50 million threshold that APRA currently applies; and
  • remove review by the Administrative Appeals Tribunal of APRA decisions regarding the use of ‘bank’ and other restricted terms in section 66.

The consultation on the draft Bill will close on Monday 14 August 2017.

Making a Submission

Interested parties are invited to comment on the review.

While submissions may be lodged electronically or by post, electronic lodgement is preferred. For accessibility reasons, please submit responses sent via email in a Word or RTF format. An additional PDF version may also be submitted.

All information (including name and address details) contained in submissions will be made available to the public on the Treasury website unless you indicate that you would like all or part of your submission to remain in confidence. Automatically generated confidentiality statements in emails do not suffice for this purpose. Respondents who would like part of their submission to remain in confidence should provide this information marked as such in a separate attachment.

Legal requirements, such as those imposed by the Freedom of Information Act 1982, may affect the confidentiality of your submission.

Closing date for submissions: Monday 14 August 2017

Address written submissions to:

Manager
Banking, Insurance and Capital Markets Unit
Financial System Division
The Treasury
Langton Crescent
PARKES ACT 2600

For enquiries please call Pat Mahony +61 2 6263 3237.

Key Documents

Ref Num: {73F277D3-7A08-4C99-8534-CF6604B80ABC}
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