Revocation of Authority to carry on banking business - GE Capital Finance Australia

Administered by Department of the Treasury

Legislation au C2015G00029 In force Gazette

Legislation content

 

Revocation of Authority to carry on banking business

 

Banking Act 1959

 

 

SINCE

 

  1. on 10 December 2014 GE Capital Finance Australia ABN 42 008 583 588 (the ADI) applied in writing to APRA under subsection 9A(1) of the Banking Act 1959 (the Act), to revoke its authority to carry on banking business in Australia (the Authority); and

 

B.                 I am satisfied that revocation of the Authority:

(i)               would not be contrary to the national interest; and

(ii)             would not be contrary to the interests of the depositors of the ADI,

 

I, Keith Chapman, a delegate of APRA, under subsection 9A(1) of the Act, REVOKE the Authority with effect from 1 January 2015 and, under subsection 9A(5A) of the Act, STATE that the Authority continues in effect as though this Revocation has not happened for the purposes of reporting standards determined under section 13 of the Financial Sector (Collection of Data) Act 2001 and prudential standards in relation to:

(i)                 the specified matters set out in the attached Schedule; and

(ii)               the specified period of 1 January 2015 to 30 June 2015, and this statement has effect accordingly.

 

 

 

 

Dated: 23 December 2014

 

[Signed]

 

Keith Chapman

Executive General Manager Diversified Institutions Division

Interpretation Document ID: 216239

In this Notice

APRA means the Australian Prudential Regulation Authority.

ADI is short for authorised deposit-taking institution and has the meaning given in subsection 5(1) of the Act.

banking business has the meaning given in subsection 5(1) of the Act.

Note 1


Under subsection 9A(5A) of the Act, the notice of revocation of the authority may state that the

authority continues in effect in relation to a specified matter or specified period, as though the revocation had not happened, for the purposes of a specified provision of the Act or the regulations, or a specified provision of another law of the Commonwealth that is administered by APRA, or a specified provision of the prudential standards, and the statement has effect accordingly.

Note 2


Under subsection 9A(6) of the Act, APRA must publish a copy of this Notice in the Gazette and

may cause notice of the revocation to be published in any other way it considers appropriate.

Note 3


Under subsection 8(1) of the Act, a body corporate is guilty of an offence if the body corporate

carries on banking business in Australia and the body corporate is not the Reserve Bank and the body corporate is not an ADI and there is no order in force under section 11 of the Act determining that subsection 8

(1) does not apply to the body corporate. A penalty of 200 penalty units applies or by virtue of subsection 4B

(3) of the Crimes Act 1914 in the case of a body corporate, a penalty not exceeding 1,000 penalty units. By virtue of subsection 8(2) of the Act, an offence against subsection 8(1) is an indictable offence. Under subsection 8(3) of the Act, if a body corporate commits an offence against subsection 8(1), the body corporate is guilty of an offence against that subsection in respect of the first day on which the offence is committed and each subsequent day (if any) on which the circumstances that gave rise to the body corporate committing the offence continue (including the day of conviction for any such offence or any later day).

Schedule - continuation of Authority

 

The entity’s authority to carry on banking business continues in effect in relation to:

 

a)      APRA’s requirements that the entity submit reporting documents and information relating to the 2014 calendar year, under these reporting standards:

 

  • ARS 110.0 Capital Adequacy
  • ARS 112.1 Standardised Credit Risk – On-balance Sheet Assets
  • ARS 112.2 Standardised Credit Risk – Off-balance Sheet Exposures
  • ARS 114.0 Standardised Approach – Operational Risk
  • ARS 117.0 Repricing Analysis
  • ARS 118.0 Off-balance Sheet Business
  • ARS 120.0 Standardised Approach – Securitisation
  • ARS 120.2 Securitisation – Supplementary Items
  • ARS 220.0 Impaired Facilities
  • ARS 220.5 Movements in Provisions for Impairment
  • ARS 221.0 Large Exposures
  • ARS 222.0 Exposures to Related Entities
  • ARS 323.0 Statement of Financial Position
  • ARS 330.0 Statement of Financial Performance
  • ARS 330.1 Interest Income and Interest Expense
  • ARS 330.2 Other Operating Income
  • ARS 330.3 Other Operating Expenses
  • ARS 331.0 Selected Revenue and Expenses
  • ARS 332.0 Statement of Economic Activity
  • ARS 394.0 Personal Finance
  • ARS 396.0 Points of Presence

 

b)     APRA’s requirements that the entity submit these reports and information required under prudential standards, relating to the 2014 calendar year:

 

  • APS 110 Capital Adequacy – the Internal Capital Adequacy Assessment Process Report
  • CPS 520 Fit and Proper – Responsible Person Notification
  • APS 310 Audit and Related matters – Risk Management Declaration and Appointed Auditor Report
  • APS 240 Risk Management of Credit Card Activities – Credit Balance (liquidity) Report
  • APS 330 Public Disclosure of Prudential Information – Capital disclosure

 

c)      any resubmissions of reporting documents or information required by APRA under any of the reporting standards or prudential standards listed in (a) and (b).

 

 

Definitions

 

In this Schedule:

 

APRA means the Australian Prudential Regulation Authority.

 

 

the entity means GE Capital Finance Australia.

 

 

2014 calendar year means the financial year starting 1 January 2014 and ending 31 December 2014.

Overview

The Banking Act 1959 was enacted to provide for the regulation of banking business in Australia and to protect the interests of depositors. This legislation allows the Australian Prudential Regulation Authority (APRA) to grant or revoke the authority of institutions to carry out banking activities. The revocation of GE Capital Finance Australia's banking authority under the Banking Act 1959, effective from 1 January 2015, was introduced to address the specific request from the institution to withdraw from the Australian banking sector. Keith Chapman, acting as a delegate of APRA, issued the revocation notice on 23 December 2014, confirming that such action would not be contrary to national interests or the interests of depositors. The revocation maintains certain reporting and prudential standards for a specified period to ensure a smooth transition and compliance with regulatory requirements.

Scope and Application

The Banking Act 1959 applies to authorised deposit-taking institutions (ADIs) operating in Australia, regulating their authority to carry on banking business. The Act extends its reach to any entity that engages in banking business in Australia unless exempted by a specific order under section 11 of the Act, with violations subject to penalties up to 1,000 penalty units. In this instance, the Australian Prudential Regulation Authority (APRA) has revoked the authority of GE Capital Finance Australia to conduct banking business, effective from 1 January 2015. Despite the revocation, the entity's authority remains in effect for certain specified matters and periods, including the submission of required reporting documents and information for the 2014 calendar year, as well as any resubmissions under specified reporting and prudential standards. This ensures continuity in compliance and reporting obligations, as outlined in the attached Schedule.

Key Provisions

The Banking Act 1959 (the Act) provides the framework for the regulation of banking in Australia. Under section 9A of the Act, an authorised deposit-taking institution (ADI) can apply to the Australian Prudential Regulation Authority (APRA) to revoke its authority to carry on banking business. In this case, GE Capital Finance Australia has applied for such revocation (subsection 9A(1)) and Keith Chapman, a delegate of APRA, has approved the revocation, effective from 1 January 2015 (subsection 9A(1)). The revocation decision is based on the satisfaction that it would not be contrary to the national interest or the interests of the depositors of the ADI (subsection 9A(1)). The Act imposes certain obligations on the ADI and APRA. The ADI must submit various reporting documents and information to APRA, including those related to capital adequacy, credit risk, operational risk, financial position, and other financial activities, as outlined in the attached Schedule. These reports must cover the 2014 calendar year and include standards such as ARS 110.0, ARS 112.1, ARS 112.2, and APS 110. Additionally, APRA is required to publish a copy of the revocation notice in the Gazette and may choose to publish it in other appropriate ways (subsection 9A(6)). In terms of potential breaches of the Act, a body corporate found to be carrying on banking business in Australia without the necessary authority commits an offence. This offence is indictable and carries a penalty of up to 1,000 penalty units (subsection 8(1), 8(2), 8(3) and the Crimes Act 1914). The revocation notice itself, however, stipulates that the ADI’s authority to carry on certain banking activities continues for specified purposes and periods, such as the submission of financial reports for the 2014 calendar year and any subsequent resubmissions as required by APRA (subsection 9A(5A)). This ensures compliance with reporting standards and prudential standards during the transition period.

Legal classification tags

Area of Law
Financial & Banking Law
Instrument
Gazette Notice
Concepts
Definitions & Interpretation
Commencement Provisions
Reporting & Disclosure Obligations
Prohibited Conduct

Interactions

Authorises

All Versions

Sourced from the Federal Register of Legislation at 26 August 2026. For the latest information on Australian Government law please go to https://www.legislation.gov.au.