6. January 2011 09:53
Against the background of the government’s Competitive and Sustainable Banking Reforms (an exposure draft of the proposed amending legislation is available on the Treasury site, comment closes 14 January 2011), APRA is reviewing the conditions for approval for the use of the term ‘bank’.
Under s 66 of the Banking Act 1959, financial businesses must obtain consent from APRA before they can use the restricted terms ‘bank’, ‘banker’ and ‘banking’.
Since 2000, building societies and credit unions have been able to use the adjective ‘banking’ in relation to their services under the terms of a class consent granted by APRA. However, ‘bank’ and ‘banker’ remain restricted to ADIs with $50m or more in Tier 1 capital.
APRA is looking for written submissions on the guidelines as part of its review – submissions are open until Friday 31 January 2011. The current guidelines on implementation of s 66 are available on the APRA site in pdf format.
Submissions may be made by email to firstname.lastname@example.org. More information is available on the APRA site.