The Government announced in the 2017-18 Budget that it would act to ensure that the Australian Prudential Regulation Authority (APRA) is able to respond flexibly to financial and housing market developments that pose a risk to financial stability, by providing APRA with new powers in respect of the provision of credit by entities that are not authorised deposit-taking institutions (non-ADI lenders), to complement APRA’s existing powers in respect of ADIs.
This consultation seeks stakeholder views on the draft Treasury Laws Amendment (Non-ADI Lender Rules) Bill 2017 (the draft Bill) which implements this measure. Draft explanatory materials are provided to assist readers in understanding the draft Bill.
Consistent with the Budget announcement, the draft Bill would:
- amend the Banking Act 1959 to: provide APRA with a power to make rules concerning the lending activities of non-ADI lenders for the purpose of addressing financial stability risks (‘non-ADI lender rules’), provide APRA with a new power to issue a direction to a non-ADI lender should the entity fail to comply with a non-ADI lender rule, and introduce penalties for non-ADI lenders that fail to comply with a direction by APRA; and
- amend the Financial Sector (Collection of Data) Act 2001 to allow APRA to collect data from non-ADI lenders for the purposes of monitoring their activities and determining when to use its new powers.
The consultation on the draft Bill will close on Monday, 14 August 2017.
No submissions are currently available.