EXPLANATORY STATEMENT
STATUTORY RULES 1982 NO 144
ISSUED BY THE AUTHORITY OF THE TREASURER
BANKING ACT 1959
AMENDMENT OF THE BANKING (STATISTICS) REGULATIONS
In accordance with section 63 of the Banking Act 1959, on 15 June 1981, the Treasurer granted consent to two mergers, one between the Bank of New South Wales and The Commercial Bank of Australia Limited and another between The National Bank of Australasia Limited and The Commercial Banking Company of Sydney Limited.
On 1 July 1981 the Governor-General in Council, in pursuance of sub-section 10(4) of the Banks (Shareholdings) Act 1972, approved the holding by the Bank of New South Wales of a 100 per cent interest in The Commercial Bank of Australia Limited and its wholly-owned subsidiary The Commercial Savings Bank of Australia Limited. He also approved the holding by The National Bank of Australasia Limited of a 100 per cent interest in The Commercial Banking Company of Sydney Limited and its wholly-owned subsidiary the CBC Savings Bank Limited. These approvals were subsequently published in the Commonwealth of Australia Gazette.
In order to meet the requirements of the Companies Acts and the stock exchanges following the mergers, The Commercial Bank of Australia Limited and The Commercial Banking Company of Sydney Limited and their respective subsidiaries are required to change their balance dates from 30 June to 30 September to bring them to the same financial year as their new parent companies.
Regulation 4 of the Banking (Statistics) Regulations prescribes dates in respect of which the trading banks are required, in pursuance of section 52 of the Banking Act 1959, to furnish balance sheets and other annual statements.
The amendment of Regulation 4 effected by this Regulation varies the table listing the annual balance dates for the trading banks by changing the prescribed balance dates for The Commercial Bank of Australia Limited and for The Commercial Banking Company of Sydney Limited from 30 June to 30 September.
Regulation 5 of the Banking (Statistics) Regulations prescribes dates in respect of which the savings banks are required, in pursuance of section 53 of the Banking Act 1959, to furnish balance sheets and other annual statements.
The amendment of Regulation 5 effected by this Regulation varies the table listing the annual balance dates for the savings banks by changing the prescribed balance dates for The Commercial Savings Bank of Australia Limited and for the CBC Savings Bank Limited from 30 June to 30 September.
THE TREASURY
CANBERRA ACT
Overview
The Banking Act 1959 was enacted to provide for the regulation and control of banking in Australia, aiming to ensure the stability and integrity of the financial system. The Banking (Statistics) Regulations, amended by Statutory Rules 1982 No 144 issued under the authority of the Treasurer, are designed to ensure that banks comply with reporting requirements, facilitating accurate and timely financial data collection. This amendment responds to the need for uniformity in financial reporting following significant mergers in the banking sector, specifically addressing the requirement for banks to align their financial years with those of their parent companies. The objective is to streamline financial reporting processes and enhance the coherence of financial data, aiding in better regulatory oversight and market transparency. The amendment was issued by the Treasury in Canberra, reflecting the government's commitment to maintaining an orderly and efficient banking system.
Scope and Application
The Banking (Statistics) Regulations Amendment (No. 1) 1981, issued under the authority of the Treasurer, amends the Banking (Statistics) Regulations to accommodate the financial restructuring following mergers involving major Australian banks. Specifically, this amendment applies to The Commercial Bank of Australia Limited, The Commercial Banking Company of Sydney Limited, and their respective subsidiaries, namely The Commercial Savings Bank of Australia Limited and CBC Savings Bank Limited. These entities are required to adjust their financial reporting periods to align with their new parent banks, which have a balance date of 30 September. The amendment reflects changes in the balance dates from 30 June to 30 September for these institutions, ensuring consistency with their new corporate structures and meeting statutory and stock exchange requirements. The amendment is a direct response to the mergers approved under the Banking Act 1959 and the Banks (Shareholdings) Act 1972, and it applies on a national level, affecting all financial reporting obligations under the Banking Act 1959. The amendment does not exclude or exempt any particular entity or transaction, but rather it extends the application of the Banking (Statistics) Regulations to include the new financial reporting requirements of the merged entities.
Key Provisions
The primary operative sections of the amendment to the Banking (Statistics) Regulations under the Banking Act 1959 (section 63) involve the modification of Regulation 4 and Regulation 5. These sections pertain to the prescribed dates for which trading banks and savings banks, respectively, must furnish balance sheets and other annual statements. Specifically, the amendment changes the annual balance dates for The Commercial Bank of Australia Limited, The Commercial Banking Company of Sydney Limited, The Commercial Savings Bank of Australia Limited, and CBC Savings Bank Limited from 30 June to 30 September. This change aligns their financial year with that of their parent companies following the mergers.
The obligations imposed by these regulations are primarily administrative and require the affected banks to adjust their financial reporting schedules. They must ensure that all balance sheets and other annual statements are prepared and submitted by 30 September each year, as mandated by the amended regulations. This adjustment is necessary to comply with the requirements of the Companies Acts and the stock exchanges, ensuring consistency in financial reporting across the merged entities.
The consequences for non-compliance with these regulations are significant. While specific offences are not detailed in the explanatory statement, the failure to adhere to the prescribed reporting dates could result in breaches of the Banking Act 1959. Such breaches could lead to civil or criminal penalties, although the exact penalties are not specified in the document. Given the regulatory nature of the Banking Act, penalties could include fines or other enforcement actions, potentially impacting the operational and financial standing of the banks involved.