Overview

The Revocation of Authority to Carry on Banking Business 2026 (C2026G00398) is an instrument made under the Banking Act 1959, which grants the Australian Prudential Regulation Authority (APRA) the power to revoke a bank's authority to carry on banking business in Australia. This specific instrument concerns the revocation of Australian Mutual Bank Ltd's section 9 authority, which allows it to operate as a bank. The authority was revoked by Peter Diamond, a delegate of APRA, following a written request from the bank itself. The revocation was made on the basis that it would not be contrary to the national interest or the interests of the bank's depositors. The revocation was enacted to ensure the orderly withdrawal of a bank from the financial system, protecting both the national interest and depositors. The instrument was published in the Gazette as required by the Act, ensuring transparency and adherence to legal requirements. The policy objective behind this revocation is to maintain financial stability and protect stakeholders in the event of a bank's withdrawal from the market.

Scope and Application

The Revocation of Authority to Carry on Banking Business 2026 applies specifically to Australian Mutual Bank Ltd, a body corporate with the Australian Business Number (ABN) 93 087 650 726. This revocation pertains to the entity’s section 9 authority to conduct banking business in Australia, as granted under the Banking Act 1959. The revocation is executed under the authority of Peter Diamond, an Executive Director of the Australian Prudential Regulation Authority (APRA), who has determined that the revocation does not contravene the national interest or the interests of the bank's depositors. This revocation is effective from the date of issuance, which is 22 June 2026. As part of the requirements under the Act, APRA is mandated to publish the notice of revocation in the Gazette and may additionally choose to disseminate the notice through other means. The Act applies nationally across Australia, and while the primary legislation sets out the framework, any further detailed provisions or specific applications may be clarified or extended through subordinate instruments issued by APRA.

Key Provisions

The Revocation of authority to carry on banking business 2026 – Australian Mutual Bank Ltd instrument, issued under the Banking Act 1959, concerns the revocation of Australian Mutual Bank Ltd's (ABN 93 087 650 726) section 9 authority to operate as a bank in Australia. This revocation follows a written request by the bank to the Australian Prudential Regulation Authority (APRA), and the decision by Peter Diamond, an APRA delegate, that the revocation is in the national interest and does not harm depositors (section 1). The instrument takes effect on the day it is made, 22 June 2026. The Act imposes specific obligations on the parties involved. For the bank, the main obligation is to formally request the revocation of its section 9 authority in writing to APRA. For APRA, the obligations include evaluating the bank's request to ensure the revocation aligns with national interests and depositors' protection, and subsequently publishing the revocation notice in the Gazette and possibly in other media (section 1, Notes). In terms of consequences, the Act does not explicitly state offences or penalties for breaches related to the revocation process itself. However, any failure by the bank to adhere to the requirements of the Act or by APRA in performing its duties could potentially lead to legal challenges or regulatory scrutiny. The primary consequence of the revocation is the loss of the bank's ability to operate as a banking institution in Australia, which is detailed in the instrument (section 1). Given that the instrument is specific to the revocation process, the primary repercussions are related to the cessation of the bank's operations. The bank will no longer be permitted to carry on banking business in Australia, as outlined in the revocation notice. This cessation could have significant implications for the bank's customers, employees, and stakeholders, though the instrument itself does not detail these broader impacts.