Revocation of authority to carry on banking business 2023 – Greater Bank Limited

Overview

The Revocation of Authority to Carry on Banking Business 2023 is a legislative instrument issued under the Banking Act 1959, which governs the operation of banking entities in Australia. This particular instrument concerns the revocation of the section 9 authority of Greater Bank Limited, an Australian banking institution, to conduct banking business within the country. The revocation was enacted due to a written request by the bank to the Australian Prudential Regulation Authority (APRA) and follows APRA's determination that such revocation would not be detrimental to the national interest or depositors. The instrument was issued by Renée Roberts, an Executive Director of APRA's Banking Division, and it became effective on the day of its creation, 21 March 2023. The policy objective, as outlined in the Act, is to ensure the orderly and safe operation of the Australian banking sector, safeguarding the interests of depositors and maintaining financial stability.

Scope and Application

The Revocation of Authority to Carry on Banking Business 2023 – Greater Bank Limited, under the Banking Act 1959, applies specifically to Greater Bank Limited, an incorporated entity with ABN 88 087 651 956, following its formal request for the revocation of its section 9 authority to conduct banking business in Australia. The revocation is authorised by Renée Roberts, an Executive Director of the Banking Division and a delegate of the Australian Prudential Regulation Authority (APRA), who is satisfied that such revocation does not jeopardise the national interest or the interests of the bank's depositors. The instrument takes effect from the date of its issuance, 21 March 2023. The scope of the Act pertains to the specified entity and its cessation of banking operations, within the jurisdiction governed by the Commonwealth under the Banking Act 1959. The Act does not explicitly mention any exclusions, exemptions, or thresholds, nor does it extend or restrict its application through subordinate instruments in the provided text.

Key Provisions

The main sections of this legislation detail the revocation of Greater Bank Limited's section 9 authority to carry on banking business in Australia. This revocation is executed by Renée Roberts, a delegate of APRA, following a written request from the bank itself (section 1). The decision to revoke the authority hinges on the satisfaction of Renée Roberts that such action does not conflict with national interests or the interests of the bank's depositors (section 1(B)). This revocation instrument is legally effective from the date of its issuance (section 1). The obligations imposed by this legislation primarily rest on the Australian Prudential Regulation Authority (APRA), which must ensure that the revocation does not adversely affect the national interest or depositors. APRA is also tasked with the responsibility of publishing the revocation notice in the Gazette, and has the discretion to use other means of publication as well (Notes). The body corporate, Greater Bank Limited, has fulfilled its obligation by submitting a written request to APRA for the revocation of its banking authority. This request is a formal step taken by the bank to cease its banking operations in Australia under the provisions of the Banking Act 1959. In terms of penalties or consequences, the legislation does not specify any direct penalties for the bank's request or APRA's revocation. However, any breach of the Banking Act 1959 or the regulations governing banking operations in Australia could potentially result in civil or criminal penalties as outlined in the Act, although these are not detailed in this specific revocation instrument. This revocation instrument is a formal and legally binding document that effectively ends Greater Bank Limited's operations as a banking institution in Australia, subject to the conditions and obligations outlined within the Banking Act 1959 and this instrument itself.