Overview

The Revocation of Authority to Carry on Banking Business 2025, gazetted under the Banking Act 1959, was introduced to address the situation where Auswide Bank Ltd has requested the revocation of its section 9 authority to operate as a banking institution in Australia. The enactment was authorised by Jane Magill, a delegate of the Australian Prudential Regulation Authority (APRA), who confirmed that the revocation would not adversely impact the national interest or the interests of the bank's depositors. The policy objective, as outlined in the Act, is to ensure that APRA can swiftly and effectively respond to such requests while maintaining the stability and integrity of the financial system. This instrument, which revokes Auswide Bank Ltd’s authority to carry on banking business, came into effect on the day it was made, 11 December 2025.

Scope and Application

The Revocation of Authority to Carry on Banking Business 2025 applies specifically to Auswide Bank Ltd, identified by its Australian Business Number (ABN) 40 087 652 060, and concerns the withdrawal of its section 9 authority to conduct banking business in Australia. The authority, granted under the Banking Act 1959, has been revoked following a written request by Auswide Bank Ltd to the Australian Prudential Regulation Authority (APRA), and subsequent confirmation by Jane Magill, an executive director and delegate of APRA, that such revocation would not be detrimental to the national interest or the interests of the bank’s depositors. The instrument takes effect from the date it is made. The geographic scope of this Act is limited to Australia, and it applies to the specific entity named, Auswide Bank Ltd, without extending to other entities or industries unless otherwise specified through subordinate instruments. The Act itself does not outline any exclusions, exemptions, or thresholds, but the application and interpretation of its provisions may be subject to further clarification or amendment through subsidiary legislation.

Key Provisions

The main operative section of the Revocation of Authority to Carry on Banking Business 2025 – Auswide Bank Ltd is section 3, where the authority of Auswide Bank Ltd to carry on banking business in Australia is revoked (s 3). This action is taken following a written request from the body corporate to the Australian Prudential Regulation Authority (APRA) and the satisfaction of the delegate, Jane Magill, that the revocation would not be contrary to the national interest or the interests of depositors of the body corporate (s 3(a), (b)). The revocation instrument is dated 11 December 2025 and commences on the day it is made (s 3(c)). The Act imposes several obligations and requirements on the parties it governs. Primarily, APRA must notify Auswide Bank Ltd of the revocation of its section 9 authority to carry on banking business in Australia (s 3(a)). The delegate, Jane Magill, must be satisfied that the revocation would not be contrary to the national interest or the interests of depositors (s 3(b)). Additionally, APRA is mandated to publish notice of the revocation in the Gazette and may choose to publish notice in other ways (s 3(d)). The Banking Act 1959 outlines various offences and penalties for breaches of its provisions. For instance, carrying on banking business without the required authority is an offence that can result in substantial penalties (s 9(1)). The Act also stipulates that any person found guilty of an offence under the Act can be subject to fines and imprisonment, with the maximum penalties varying depending on the severity of the breach (s 12). The specific penalties for breach are not detailed in the revocation instrument but are governed by the broader provisions of the Banking Act 1959. The revocation of Auswide Bank Ltd's authority to carry on banking business in Australia has significant implications for the entity and its stakeholders. The revocation is effective immediately upon its publication, and Auswide Bank Ltd must cease all banking activities in Australia as per the requirements of the Act (s 3(c)). Failure to comply with the revocation may result in further enforcement actions by APRA, including additional penalties and legal consequences (s 12). The notice of revocation is published in the Gazette to ensure transparency and inform the public of the changes in the banking landscape (s 3(d)). In summary, the Revocation of Authority to Carry on Banking Business 2025 – Auswide Bank Ltd, under the Banking Act 1959, mandates the revocation of Auswide Bank Ltd's section 9 authority following a written request and a determination by the delegate that the revocation is in the national interest and the interests of depositors. The Act imposes clear obligations on APRA and Auswide Bank Ltd, with specific provisions for publishing the revocation notice. Breach of the Act's provisions can lead to significant penalties, including fines and imprisonment, underscoring the importance of compliance with its requirements.