Banking Act 1967

Legislation au C1967A00084 Not in force Act

Legislation content

Banking

No. 84 of 1967

An Act relating to the Papua and New Guinea Development Bank and to the Australian Resources Development Bank Limited.

[Assented to 8 November 1967]

BE it enacted by the Queen’s Most Excellent Majesty, the Senate, and the House of Representatives of the Commonwealth of Australia, as follows:—

Short title and citation.

1.—(1.) This Act may be cited as the Banking Act 1967.

(2.) The Banking Act 1959–1966 is in this Act referred to as the Principal Act.

(3.) The Principal Act, as amended by this Act, may be cited as the Banking Act 1959–1967.

Commencement.

2. This Act shall come into operation on the day on which it receives the Royal Assent.

Interpretation

3. Section 5 of the Principal Act is amended—

(a) by inserting in sub-section (1.), after the definition of “Australia”, the following definition:—

“‘Australian Resources Development Bank Limited’ means the company of that name incorporated in the State of Victoria;”;

(b) by omitting from the definition of “bank” in sub-section (1.) the words “and the Commonwealth Development Bank” and inserting in their stead the words “, the Commonwealth Development Bank, the Papua and New Guinea Development Bank and the Australian Resources Development Bank Limited”; and


(c) by inserting in sub-section (1.), after the definition of “bank”, the following definition:—

“‘Papua and New Guinea Development Bank’ means the body corporate of that name established by the Papua and New Guinea Development Bank Ordinance 1965 in force under the Papua and New Guinea Act 1949–1966;”.

4. After section 9 of the Principal Act the following section is inserted:—

Papua and New Guinea Development Bank and Australian Resources Development Bank may carry on banking business.

“9a. The Papua and New Guinea Development Bank and the Australian Resources Development Bank Limited may, notwithstanding section eight of this Act, carry on banking business in Australia.”.

Treasurer to be supplied with certain documents.

5. Section 10 of the Principal Act is amended by adding at the end thereof the following sub-section:—

“(4.) The last preceding sub-section applies in relation to the Australian Resources Development Bank Limited as if it were a bank specified in the First Schedule.”.

Definitions.

6. Section 17 of the Principal Act is amended by adding at the end thereof the following sub-section:—

“(2.) The reference in the definition of ‘Australian deposits’ in the last preceding sub-section to moneys on deposit with a trading bank does not include a reference to moneys that have been lent to that trading bank by the Australian Resources Development Bank Limited by reason of an advance having been made, or to be made, by that trading bank.”.

Advance policy.

7. Section 36 of the Principal Act is amended by adding at the end of sub-section (4.) the words “, the Papua and New Guinea Development Bank and the Australian Resources Development Bank Limited”.

Definition.

8. Section 51 of the Principal Act is amended by adding at the end thereof the words “, the Papua and New Guinea Development Bank and the Australian Resources Development Bank Limited”.

9. After section 63 of the Principal Act the following section is inserted:—

Alterations in structure or ownership of Australian Resources Development Bank require consent of Treasurer.

“63a.—(1.) Except with the prior consent in writing of the Treasurer—

(a) an allotment of shares in the capital of the Australian Resources Development Bank Limited shall not be made;

(b) a transfer of shares in the capital of the Australian Resources Development Bank Limited shall not be registered;

(c) a reconstruction of the Australian Resources Development Bank Limited shall not be effected; and


(d) an arrangement or agreement for any sale or disposal of the business of the Australian Resources Development Bank Limited by amalgamation or otherwise, or for the carrying on of its business in partnership with another person, shall not be entered into.

“(2.) If such an allotment is made, such a registration or reconstruction is effected, or such an arrangement or agreement is entered into, without the prior consent of the Treasurer—

(a) the Australian Resources Development Bank Limited is guilty of an offence punishable, on conviction, by a fine not exceeding Two thousand dollars; and

(b) the allotment, registration, reconstruction, arrangement or agreement, and any such sale or disposal in pursuance of the arrangement or agreement, is void and of no effect.”.

Unclaimed moneys.

10. Section 69 of the Principal Act is amended by inserting in sub-section (12.), at the end of the definition of “trading bank”, the words “and the Australian Resources Development Bank Limited”.

Second Schedule.

11. The Second Schedule to the Principal Act is amended by omitting from Forms A and D the words “or the Commonwealth Development Bank” and inserting in their stead the words “, the Commonwealth Development Bank or the Papua and New Guinea Development Bank”.

 

Overview

The Banking Act 1967 was enacted to address the need for legislative clarity and regulation regarding the operations of the Papua and New Guinea Development Bank and the Australian Resources Development Bank Limited. This Act was passed by the Queen’s Most Excellent Majesty, the Senate, and the House of Representatives of the Commonwealth of Australia. Its primary purpose was to integrate these two development banks into the existing regulatory framework of the Banking Act 1959–1966, ensuring that they could carry out banking business in Australia while maintaining oversight and regulatory compliance. The Act amends the definition of "bank" to include these two institutions and specifies that the Treasurer's consent is required for any significant changes in their structure or ownership, reflecting the policy objective of maintaining financial stability and oversight over these critical financial entities.

Scope and Application

The Banking Act 1967 applies to the Papua and New Guinea Development Bank and the Australian Resources Development Bank Limited, extending the existing regulatory framework established by the Banking Act 1959–1966 to these institutions. This Act specifically authorises the Papua and New Guinea Development Bank and the Australian Resources Development Bank Limited to engage in banking activities within Australia, despite provisions in the Principal Act that might otherwise restrict such activities. Additionally, the Act mandates that the Treasurer be provided with certain documents and outlines penalties for unauthorised allotments, transfers, reconstructions, or arrangements involving the Australian Resources Development Bank Limited. The Act's provisions include amendments to definitions, reporting requirements, and penalties, with certain sections being extended to cover these new banks through subordinate instruments, ensuring consistency in the regulatory oversight of all designated banks.

Key Provisions

The Banking Act 1967 (the "Act") introduces significant amendments to the existing Banking Act 1959–1966, now referred to as the Principal Act. This Act includes new provisions concerning the Papua and New Guinea Development Bank and the Australian Resources Development Bank Limited, allowing them to engage in banking activities within Australia (Section 9a). Furthermore, it mandates that these entities provide certain documents to the Treasurer, aligning them with other specified banks in this regard (Section 5). The Act also modifies definitions to clarify the scope of terms such as "Australian deposits" and "trading bank" (Sections 6 and 17). Additionally, it includes new sections that require the Treasurer's written consent for specific actions involving the Australian Resources Development Bank Limited, such as share allotments, transfers, and business arrangements (Section 63a). The Act imposes several obligations on the Papua and New Guinea Development Bank and the Australian Resources Development Bank Limited. These include the need to obtain the Treasurer's consent before making allotments of shares, registering share transfers, reconstructing the bank, or entering into arrangements that involve selling or disposing of the bank’s business (Section 63a). Failure to obtain such consent renders any such transactions void and subjects the bank to potential penalties. The Act also requires these banks to supply the Treasurer with specified documents, ensuring transparency and oversight in their operations (Section 5). Violation of the provisions concerning the Treasurer’s consent for certain banking actions results in criminal liability for the Australian Resources Development Bank Limited. Specifically, if allotments of shares, share transfers, reconstructions, or business arrangements are made without the required consent, the bank commits an offence and is liable to a fine of up to Two thousand dollars (Section 63a). Additionally, any such transactions made without consent are deemed void and have no legal effect. The Act ensures that these provisions are strictly enforced to maintain regulatory compliance and protect the interests of stakeholders.

Legal classification tags

Area of Law
Banking Law
Finance & Banking Law
Instrument
Act
Concepts
Definitions & Interpretation
Commencement Provisions
Offence Provisions
Licensing & Registration
Reporting & Disclosure Obligations

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Sourced from the Federal Register of Legislation at 26 August 2026. For the latest information on Australian Government law please go to https://www.legislation.gov.au.