Banking (Statistics) Regulations (Amendment) 1997 No. 24
EXPLANATORY STATEMENT
STATUTORY RULES 1997 NO. 24
Issued by the Authority of the Assistant Treasurer
Banking Act 1959
Banking (Statistics) Regulations (Amendment)
Section 71 of the Banking Act 1959 (the Act) provides that the Governor-General may make regulations for the purpose of the Act.
Paragraph 5 1 (1)(a) of the Act and regulations 4 and 5 of the Banking (Statistics) Regulations (the Regulations) require banks to prepare financial statements which must be provided to the Reserve Bank of Australia (RBA). Regulations 4 and 5 requires these accounts to be prepared as at the bank's accounting day (or balance day) for that year. Regulation 3 provides that the RBA may fix the day that is to be the accounting day for a bank.
In 1990, an undertaking was provided to the Senate Standing Committee on Regulations and Ordinances to amend regulation 3(b) to require the RBA to provide written notification of a bank's accounting day (presently, regulation 3(b) only requires the RBA to "tell the bank") To this date, this undertaking has not been acted upon. The proposed amendment gives effect to this original undertaking.
As it is the RBA's current practice to provide written notification, the proposed amendment will simply formalise current practice.
The proposed Regulation would commence on Gazettal.
The Minute recommends that the Regulation be made in the form proposed.
Overview
The Banking (Statistics) Regulations (Amendment) 1997 No. 24, issued under the authority of the Assistant Treasurer, amends the Banking (Statistics) Regulations 1997. These amendments respond to an undertaking provided to the Senate Standing Committee on Regulations and Ordinances in 1990 to require the Reserve Bank of Australia (RBA) to provide written notification to banks regarding their accounting day, rather than simply informing them as currently required. This change formalises existing practice and is intended to enhance clarity and record-keeping for compliance with the Banking Act 1959. The policy objective behind this amendment is to ensure that banks receive explicit and documented instructions regarding their accounting days, thereby supporting the integrity and accuracy of the financial reporting process mandated by the Act and Regulations.
Scope and Application
The Banking (Statistics) Regulations (Amendment) 1997 No. 24 applies to all banks within the Commonwealth of Australia, ensuring that financial institutions comply with the requirements set forth in the Banking Act 1959. These regulations specifically mandate that banks prepare and submit financial statements to the Reserve Bank of Australia (RBA), in accordance with the stipulated accounting day, as set by the RBA. The amendment to Regulation 3(b) formalises the current practice of the RBA providing written notification to banks regarding their designated accounting day, thus ensuring clarity and adherence to the statutory requirements. While the regulations extend to all banks in Australia, they do not include any stated exclusions or exemptions, and the amendment itself merely seeks to formalise existing practices without altering the scope of application. The amendment will come into effect upon gazette publication, reinforcing the legislative intent to standardise and formalise the communication process between the RBA and banks.
Key Provisions
The main operative sections of the Banking (Statistics) Regulations (Amendment) 1997 No. 24 pertain to how banks must prepare and submit financial statements. Specifically, Section 71 of the Banking Act 1959 allows the Governor-General to create regulations for the purposes of the Act. Regulation 3 specifies that the Reserve Bank of Australia (RBA) can determine the accounting day for a bank, which is the day on which the bank's financial statements must be prepared. Regulations 4 and 5 require that these statements be prepared as at the bank's accounting day for the financial year. Regulation 3(b) is amended to require the RBA to provide written notification of the accounting day to the bank, formalising a practice that was already in place.
The obligations imposed by these regulations on the parties involved are primarily on the banks and the RBA. Banks are required to prepare their financial statements by their accounting day as specified by the RBA. The RBA, on the other hand, is obligated to determine the accounting day for each bank and to provide written notification of this date to the respective banks, in accordance with the amendment.
There are no specific offences, penalties, or consequences outlined in the explanatory statement for non-compliance with these regulations. However, it is implied that failure to adhere to these requirements could lead to scrutiny from the RBA or other regulatory bodies, potentially resulting in further directives or sanctions. The primary focus of the amendment is to formalise existing practice and ensure clarity and transparency in the notification process between the RBA and the banks.