Authority to carry on banking business 2023 – IN1Bank Ltd
Banking Act 1959
To: IN1Bank Ltd ABN 62 627 541 011 (the body corporate)
SINCE
- On 12 December 2019, APRA:
(i) under subsection 9(3) of the Banking Act 1959 (the Act), granted the body corporate authority to carry on banking business in Australia for a limited time (the Authority); and
(ii) under paragraph 9AA(1)(a) of the Act, imposed conditions on the Authority (the Authority Conditions); and
B. On 16 June 2021, the Authority was varied to change the expiry date of the Authority to 12 December 2022;
C. On 12 September 2022, the Authority was further varied to change the expiry date of the Authority to 12 June 2023;
D. The body corporate has applied in writing to APRA:
(i) under subsection 9(2) of the Act, for an authority to carry on banking business in Australia that is not subject to a time limit; and
(ii) for the Authority Conditions to be revoked, I, Renée Roberts, a delegate of APRA:
(a) under subsection 9D(6) of the Act, VARY the Authority to remove the time limit that applies to the Authority; and
(b) under paragraph 9AA(1)(b) of the Act, REVOKE the Authority Conditions.
This instrument commences on the day it is made.
Dated: 25 May 2023
Renée Roberts Executive Director Banking Division
Interpretation
In this instrument:
APRA means the Australian Prudential Regulation Authority.
banking business has the meaning given in subsection 5(1) of the Act.
Notes
APRA is required to publish this instrument in the Gazette, and may also publish this instrument in any other way that APRA considers appropriate.
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Overview
The Authority to Carry on Banking Business 2023 (IN1Bank Ltd) Gazette 2023, issued on 25 May 2023, modifies the regulatory framework under which IN1Bank Ltd operates. Enacted under the Banking Act 1959, this legislative instrument responds to IN1Bank Ltd's application for a permanent banking licence, free from time constraints, and for the removal of specific conditions imposed by the Australian Prudential Regulation Authority (APRA). The Australian Government, through APRA, is the enacting body, with the primary objective of ensuring that IN1Bank Ltd meets the necessary regulatory standards to provide banking services indefinitely while also alleviating any restrictive conditions previously imposed. This Gazette acts to streamline the bank's operations by providing a permanent licence and removing specific conditions, thereby supporting the bank's long-term stability and compliance with Australian banking regulations.
Scope and Application
The Authority to Carry on Banking Business 2023 – IN1Bank Ltd Banking Act 1959 applies specifically to IN1Bank Ltd, an incorporated body with Australian Business Number 62 627 541 011. This legislation pertains to the authority granted to the bank to carry out banking operations within Australia, subject to the terms and conditions outlined in the Banking Act 1959. The authority initially granted on 12 December 2019 was limited in time, but subsequent variations have extended this authority to 12 June 2023. The instrument also revokes certain conditions previously imposed on this authority. The legislation applies nationally across Australia, aligning with the jurisdictional reach of the Commonwealth under the Banking Act 1959. The instrument itself does not specify any exclusions, exemptions, or thresholds, but these could be defined in subordinate instruments or the Act itself. The instrument is effective from the date of its making and has been authorised by Renée Roberts, a delegate of the Australian Prudential Regulation Authority (APRA), who is mandated to publish this instrument in the Gazette and any other appropriate manner.
Key Provisions
The primary operative sections of this legislation pertain to the variation and revocation of the authority granted to IN1Bank Ltd under the Banking Act 1959. Specifically, section 9(2) of the Act enables the Australian Prudential Regulation Authority (APRA) to grant IN1Bank Ltd the authority to carry on banking business in Australia, while section 9(3) allows for the imposition of conditions on such authority. Additionally, section 9AA of the Act enables APRA to revoke these conditions. The instrument in question varies the existing authority, removing the time limit that previously applied, and revokes the conditions that were imposed upon the authority.
IN1Bank Ltd, as the entity governed by this legislation, has certain obligations and requirements that must be adhered to. Firstly, the bank must comply with the conditions imposed by APRA under section 9AA of the Act. These conditions may include requirements related to the bank's financial stability, governance, and risk management practices. Furthermore, IN1Bank Ltd must ensure that it maintains adequate capital levels, liquidity, and other prudential standards as stipulated by APRA. The bank is also required to submit regular reports and disclosures to APRA, as well as to maintain proper records and documentation related to its banking operations.
In the event of non-compliance with the conditions imposed by APRA or the provisions of the Banking Act 1959, IN1Bank Ltd may face various civil and criminal consequences. Under section 9H of the Act, a body corporate that contravenes certain provisions of the Act may be subject to a pecuniary penalty of up to $210,000 for each contravention. Additionally, individuals who are responsible for the contravention may also be subject to personal fines and imprisonment. It is important to note that the maximum penalties for contraventions of the Banking Act 1959 can vary depending on the specific provisions breached and the severity of the offence.