EXPLANATORY STATEMENT
STATUTORY RULES 1989 NO 81
ISSUED BY THE AUTHORITY OF THE TREASURER
BANKING ACT 1959
BANKING (STATISTICS) REGULATIONS (AMENDMENT)
Section 71 of the Banking Act 1959 empowers the Governor-General to make regulations not inconsistent with the Act which are necessary or convenient to be prescribed for carrying and or giving effect to the Act.
Section 52 of the Act requires that each trading bank prepare and deliver annual balance sheets and statements, in accordance with the forms contained in the Schedule to the Act. Regulation 5 of the Banking (Statistics) Regulations prescribes a date in respect of which the balance sheets and other annual statements are required to be furnished for each individual bank.
The prescribed date for the Primary industry Bank of Australia was 30 June, for the purposes of Section 52 of the Banking Act. The Bank wished to change the prescribed reporting date to 31 March to bring its reporting date in line with that of its parent bank, the Rural and Industries Bank of Western Australia, thereby minimising the burden placed on the bank in completing the statistical returns.
Regulation 5 has been amended by the inclusion in the table listing the annual balancing dates for banks, 31 March of each year as the date for the Primary Industry Bank of Australia.
Overview
The Banking (Statistics) Regulations (Amendment) 1989 were enacted to address the need for the Primary Industry Bank of Australia to align its reporting date with that of its parent bank, the Rural and Industries Bank of Western Australia. This change aimed to reduce the administrative burden on the bank by synchronizing its reporting obligations with those of its parent entity. The amendment to Regulation 5 of the Banking (Statistics) Regulations, made under the authority of the Treasurer and pursuant to Section 71 of the Banking Act 1959, effectively changed the prescribed reporting date for the Primary Industry Bank of Australia from 30 June to 31 March. This alteration was implemented to facilitate smoother and more efficient statistical reporting processes for the bank, reflecting the broader policy objective of streamlining banking regulations to enhance operational efficiency and reduce compliance costs.
Scope and Application
The Banking (Statistics) Regulations (Amendment) Statutory Rules 1989 No 81, issued under the authority of the Treasurer, pertain to amendments in the prescribed reporting dates for annual balance sheets and statements required from trading banks under the Banking Act 1959. Specifically, these regulations address the modification of the reporting date for the Primary Industry Bank of Australia, altering it from the previous 30 June to align with the 31 March date of its parent entity, the Rural and Industries Bank of Western Australia. This adjustment aims to streamline the statistical reporting process, thereby reducing the administrative burden on the Primary Industry Bank of Australia. The amendment is confined to Regulation 5 of the Banking (Statistics) Regulations, which sets the annual reporting dates for banks. These regulations do not alter the substantive requirements of the Banking Act 1959 but rather refine the administrative framework to facilitate more efficient data collection and reporting within the banking sector.
Key Provisions
The main operative sections of the Banking (Statistics) Regulations (Amendment) 1989 (C2004L03968) pertain primarily to Regulation 5, which lists the prescribed annual reporting dates for various trading banks, including the Primary Industry Bank of Australia (PIBA). Section 52 of the Banking Act 1959 mandates that each trading bank must prepare and deliver annual balance sheets and statements in accordance with the forms prescribed by the Act. Regulation 5, as amended by these Regulations, now includes 31 March as the prescribed reporting date for PIBA, aligning it with the reporting date of its parent bank, the Rural and Industries Bank of Western Australia.
These amendments impose specific obligations on the Primary Industry Bank of Australia to prepare and submit its annual balance sheets and other required statements by 31 March each year, as opposed to the previous date of 30 June. The change is intended to streamline the statistical reporting process for the bank, thereby reducing the administrative burden associated with the preparation and submission of these documents. This amendment ensures that PIBA's reporting aligns with the broader regulatory framework and practices of its parent institution, thereby facilitating more efficient and consistent financial oversight and compliance.
Failure to comply with the amended reporting requirements set out in Regulation 5 may result in significant consequences. Under Section 52 of the Banking Act 1959, non-compliance with the statutory requirement to submit annual balance sheets and statements by the prescribed date may be viewed as a breach of regulatory obligations. While the specific penalties for non-compliance are not detailed within the explanatory statement, breaches of statutory requirements under the Banking Act 1959 could potentially lead to civil or criminal penalties, depending on the severity and intent of the breach. The penalties for such breaches could include fines or, in more serious cases, criminal charges for directors or officers of the bank found to be in violation of the Act.