Conditions on banking authority 2025 – IN1BANK Ltd
Banking Act 1959
To: IN1BANK Ltd ABN 62 627 541 011 (the ADI)
SINCE the ADI holds a section 9 authority under the Banking Act 1959 (the Act) to carry on banking business in Australia (the authority),
I, Jane Magill, a delegate of APRA, under paragraph 9AA(1)(a) of the Act, IMPOSE the conditions on the authority as specified in the schedule (the imposed conditions).
This instrument commences on the day it is made. Dated: 20 June 2025
Jane Magill Executive Director
General Insurance and Banking Division
Interpretation
In this instrument:
APRA means the Australian Prudential Regulation Authority.
banking business and section 9 authority have their respective meanings given in subsection 5(1) of the Act.
Notes
Note 1 APRA is required to publish this instrument in the Gazette.
Note 2 A decision to impose conditions or additional conditions on a section 9 authority is a decision to which Part VI of the Act applies. You may request that APRA reconsider the decision in accordance with subsection 51B(1) of the Act. The request for reconsideration must be made in writing, must state the reasons for the request, and must be given to APRA within 21 days after the day on which you first received notice of this decision, or within such
further period as APRA allows. The address where written notice may be given to APRA is Level 12, 1 Martin Place, Sydney NSW 2000.
Note 3 If you are dissatisfied with the outcome of APRA’s reconsideration of the decision, you may, subject to the Administrative Review Tribunal Act 2024, apply to the Administrative Review Tribunal for review of the reconsidered decision.
Note 4 You also have the right to obtain access to documents about the decision under the Freedom of Information Act 1982. If you wish to submit a freedom of information (FOI) request to APRA, please send the request to foi@apra.gov.au and (a) specify that the request is an FOI request and (b) provide any other information about the document(s) you are requesting. More information about FOI and APRA is available on our website at https://www.apra.gov.au/freedom-of-information.
Schedule – the conditions
Notwithstanding anything in the prudential standards:
- in1bank must, strictly in accordance with the Trigger Framework set out in its REP, activate its REP and commence implementing the recovery and exit actions set out in it at least 20 weeks prior to any breach or prospective breach of its Prudential Capital Requirements.
- If in1bank activates its REP, in1bank must strictly comply with the requirements of the REP.
- No amendments to the Trigger Framework are permitted (whether the REP has been activated or has not been activated) without the prior written approval of APRA.
In this schedule:
Prudential Capital Requirements has the meaning given in Prudential Standard APS 110 Capital Adequacy as in force from time to time.
REP means in1bank’s recovery and exit plan dated 10 February 2025 as amended from time to time in accordance with condition 3.
Trigger Framework means the triggers set out in the REP under the heading ‘3.2 Recovery to timeframe exit’.
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Overview
The Conditions on Banking Authority 2025, made under the Banking Act 1959, imposes specific conditions on IN1BANK Ltd's banking authority to ensure compliance with regulatory requirements and maintain financial stability. Enacted by the Australian Prudential Regulation Authority (APRA), this legislation addresses potential risks associated with IN1BANK Ltd's operations by mandating strict adherence to its recovery and exit plan, prohibiting amendments to the plan without APRA's prior approval, and requiring the plan's activation at least 20 weeks before any breach of its prudential capital requirements. This legislative instrument aims to safeguard the banking sector by enforcing stringent oversight and timely corrective measures.
Under the authority granted by the Banking Act 1959, APRA has the responsibility to monitor and regulate authorised deposit-taking institutions, ensuring they meet the necessary prudential standards. By imposing these conditions, APRA seeks to mitigate risks and uphold the integrity of the banking system. IN1BANK Ltd is required to follow its recovery and exit plan strictly, with no amendments allowed without APRA's written consent. This measure ensures that the bank maintains adequate capital and is prepared to address any potential breaches effectively. The conditions are designed to promote financial stability and protect depositors, thereby reinforcing the regulatory framework established by the Banking Act 1959.
Scope and Application
The Banking Act 1959, as applied through this instrument, imposes specific conditions on IN1BANK Ltd, an authorised deposit-taking institution (ADI) holding a section 9 authority under the Act. These conditions are directed at ensuring the stability and regulatory compliance of IN1BANK Ltd in carrying on its banking business within Australia. The provisions apply directly to IN1BANK Ltd, identified by its Australian Business Number (ABN) 62 627 541 011, and pertain to the operational and strategic framework under which the institution must conduct its business. The authority to impose these conditions is exercised by Jane Magill, a delegate of the Australian Prudential Regulation Authority (APRA), under the powers conferred by the Act. The conditions set out in the schedule include strict adherence to the bank's Recovery and Exit Plan (REP), activation of this plan prior to any breach of Prudential Capital Requirements, and the prohibition of amendments to the Trigger Framework without APRA's prior written approval. This instrument is applicable nationally within the Commonwealth of Australia and is effective from the date it is made.
Key Provisions
The primary sections of the Conditions on Banking Authority 2025 – IN1BANK Ltd Banking Act 1959 (Gazette) provide specific conditions that are imposed on IN1BANK Ltd's banking authority under the Banking Act 1959. These conditions include the requirement for IN1BANK Ltd to activate its recovery and exit plan (REP) at least 20 weeks before any breach or prospective breach of its Prudential Capital Requirements (section 9). Furthermore, if IN1BANK Ltd activates its REP, it must strictly comply with all the requirements of the REP (section 10). Additionally, any amendments to the Trigger Framework within the REP are not permitted without prior written approval from APRA (section 11).
These conditions impose several obligations on IN1BANK Ltd. Firstly, the bank must ensure that its REP is activated and implemented strictly in accordance with the Trigger Framework at least 20 weeks prior to any breach of its Prudential Capital Requirements. Secondly, once the REP is activated, IN1BANK Ltd must adhere to all the stipulated requirements of the REP without deviation. Finally, any proposed changes to the Trigger Framework within the REP must be approved in writing by APRA before they can be implemented. Failure to comply with these conditions could result in regulatory action or sanctions.
Breaches of these imposed conditions could lead to various consequences. Under the Banking Act 1959, non-compliance with the conditions imposed on the banking authority can result in enforcement actions by APRA. This may include the imposition of financial penalties, orders for the rectification of non-compliant activities, or in severe cases, the revocation of the banking authority. The specific penalties and enforcement measures would be determined by APRA based on the nature and severity of the breach. It is important for IN1BANK Ltd to adhere strictly to the imposed conditions to avoid any potential regulatory repercussions.