EXPLANATORY STATEMENT
Statutory Rules 1988 No. 254
Issued by the Authority of the Treasurer
Banking Act 1959
Banking (Statistics) Regulations (Amendment)
Section 52 of the Banking Act 1959 requires that trading banks prepare and deliver six forms (A, B, C, D, E and F) containing financial information to the Commonwealth Statistician and the Reserve Bank. Section 53 requires that savings banks submit five forms (B, G, H, I and J) containing similar financial information.
The information to be contained in each of the 10 forms is prescribed in the Second Schedule to the Act as amended. Section 56 of the Banking Act 1959 provides that variation of the statistical forms in the Second Schedule may be carried out by regulations if the proposed amendments do not change the essential nature of the form.
Statutory forms D and I serve the purpose of providing details of the assets and liabilities of trading and savings banks within Australia, with a time-lag of only a few weeks.
The amendments to forms D and I are elaborations of the various categories of assets and liabilities to reflect development in the financial sector. For ease of reference a summary description of the changes is attached to this Statement.
Banks are required to commence reporting under the revised forms D and I from 1 January 1989. Since the banks have been made aware of the proposed changes this means that they will have had a period of about 12 months to prepare for them.
Further changes will be required to forms D and 1 when the Banking Act is amended as the Government will propose, to remove the distinction between savings banks and trading banks. However, the transition to reporting on a unitary basis will in the case of most banks probably occur over some time. Accordingly, it was considered that the best course was to proceed to amend forms D and I now, so as to bring up to date as soon as practicable the information required from savings banks and trading banks, rather than to postpone revisions until those further amendments to the forms can also be made.
Overview
The Banking (Statistics) Regulations (Amendment) 1988, issued under the authority of the Treasurer, amends the Banking (Statistics) Regulations 1959 to update the statistical reporting requirements for Australian trading and savings banks. These amendments are necessary to reflect the evolving nature of the financial sector, ensuring that the statistical information collected remains relevant and accurate. The changes involve elaborating the categories of assets and liabilities within the statutory forms D and I, which detail the financial positions of banks, to better capture the current financial landscape. This update was enacted to address the gap in the existing reporting framework, ensuring that the information provided to the Commonwealth Statistician and the Reserve Bank is reflective of the current economic conditions. The policy objective is to maintain an effective and responsive financial statistics system that supports informed decision-making by the government and other stakeholders.
Scope and Application
The Banking (Statistics) Regulations (Amendment) Statutory Rules 1988 No. 254, issued under the authority of the Treasurer, amend the prescribed forms that trading and savings banks must submit under the Banking Act 1959. These amendments particularly affect the content of forms D and I, which detail the assets and liabilities of banks, to better reflect developments in the financial sector. This regulatory action applies to all trading and savings banks within Australia, which must report under the revised forms starting from 1 January 1989. The modifications to these forms aim to enhance the accuracy and relevance of the financial data provided to the Commonwealth Statistician and the Reserve Bank, ensuring that the statistical information remains current and reflective of the evolving banking landscape. These changes are part of a broader initiative to eventually unify the reporting requirements for all banks, pending further amendments to the Banking Act itself.
Key Provisions
The Banking (Statistics) Regulations (Amendment) Statutory Rules 1988 No. 254 introduce amendments to the prescribed statistical forms D and I under the Banking Act 1959. These amendments are intended to provide more detailed information about the assets and liabilities of both trading and savings banks in Australia. As per sections 52 and 53 of the Act, trading banks are required to submit six forms (A, B, C, D, E and F), while savings banks must provide five forms (B, G, H, I and J). Section 56 of the Act allows for variations in the statistical forms through regulations, provided the essential nature of the forms remains unchanged. The new regulations, which come into effect from 1 January 1989, aim to update the categories of assets and liabilities to reflect recent developments in the financial sector.
The amendments to forms D and I impose specific obligations on both trading and savings banks. These banks are required to provide more granular details about their assets and liabilities, which will aid in producing more accurate and timely financial statistics. Banks must commence reporting under the revised forms from the specified date, ensuring they have adequate time to adjust their reporting processes. The changes are designed to enhance the quality of financial data available to the Commonwealth Statistician and the Reserve Bank, facilitating better-informed policy decisions.
Failure to comply with the new requirements could lead to various consequences. While the exact penalties are not specified in the explanatory statement, breaches of the Banking Act 1959 generally attract civil or criminal penalties, depending on the nature and severity of the breach. The Act provides for both civil and criminal sanctions, including fines and imprisonment, for non-compliance with its provisions. Banks that fail to adhere to the new reporting requirements may face legal action, which could result in significant financial and reputational damage.
The amendments to forms D and I are a precursor to further changes that will be implemented when the Banking Act itself is amended. These future changes aim to remove the distinction between savings banks and trading banks, leading to a more unified reporting framework. While the transition to this new reporting structure may take some time, the current amendments ensure that the information collected from both types of banks is current and relevant, providing a solid foundation for future reforms.