Banking (Statistics) Regulations (Amendment)

Overview

The Banking (Statistics) Regulations (Amendment) 1992 No. 396, issued under the authority of the Treasurer, aims to amend the Banking (Statistics) Regulations of 1992 to reflect changes in the Reserve Bank of Australia's data collection procedures. This amendment was enacted to address the evolving needs of the financial sector by updating the regulatory framework for the collection and verification of banking statistics. The policy objective is to streamline the process by which banks submit their financial information to the Reserve Bank, thereby enhancing the efficiency and reliability of the statistical data provided. By proposing to omit Regulation 8, which currently requires a balance sheet or statement to be verified by a statutory declaration, the Reserve Bank intends to facilitate the transition to electronic submission of returns, supported by external audit opinions on the reliability of the data. This amendment ensures that the regulations remain current and effective in supporting the Reserve Bank's mandate to monitor and regulate the banking industry.

Scope and Application

The Banking (Statistics) Regulations (Amendment) 1992 No. 396 amends the Banking (Statistics) Regulations to update the data collection procedures for financial information submitted by banks to the Reserve Bank. This amendment applies to all banks regulated under the Banking Act 1959 and specifically targets the regulatory framework governing the collection and verification of banking statistics. The amendments aim to facilitate the electronic submission of statutory returns, thereby modernising the reporting process. The jurisdictional reach of these regulations is nationwide, as they apply to all banks operating within Australia and are issued under the authority of the Treasurer. The proposed changes exclude any requirement for a statutory declaration to accompany the returns, reflecting the Reserve Bank's confidence in the reliability of the statistical information provided by external auditors. This amendment streamlines the regulatory process, aligning it with contemporary data collection practices while maintaining the integrity and accuracy of banking statistics.

Key Provisions

The main operative sections of the Banking (Statistics) Regulations (Amendment) 1992 No. 396 are focused on updating the Reserve Bank's data collection procedures. Section 71 of the Banking Act 1959 empowers the Governor-General to make Regulations under the Act, which include provisions for the collection and publication of information about banks (Section 51). Currently, Regulation 8 of the Banking (Statistics) Regulations mandates that banks submit verified balance sheets or statements to the Reserve Bank, with verification by a statutory declaration made by a senior officer of the bank (Section 51(1)(d)). The proposed amendment seeks to omit Regulation 8, reflecting the Reserve Bank's intention to have banks submit their statutory returns electronically, with external auditors verifying the reliability of the statistical information. The amendment imposes obligations on banks to submit their financial information electronically to the Reserve Bank, following the updated data collection procedures. This change requires banks to ensure that their returns are accurately prepared and submitted in the prescribed format, and that they are verified by an external auditor whose opinion will attest to the reliability of the information provided. Banks must also ensure that they are compliant with any additional instructions or requirements set forth by the Reserve Bank regarding the electronic submission of their returns. Failure to comply with the Banking (Statistics) Regulations, including the proposed amendment, could result in various consequences. While specific penalties are not detailed in the explanatory statement, non-compliance with the Banking Act 1959 generally could result in enforcement actions by the Reserve Bank or other relevant authorities. This may include administrative penalties, fines, or other civil or criminal consequences, depending on the severity of the breach and the specific provisions of the Act that are contravened. The exact nature and severity of penalties would be determined in accordance with the relevant laws and regulations applicable at the time of the breach.