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Schedule 2—Limited banking licences

Schedule 2 Limited banking licences

Part 1 Authority to carry on banking business for a limited time

Banking Act 1959

1  After paragraph 9A(2)(j)

Insert:

                   ; (k)  if the section 9 authority is to cease to have effect on a day specified in the authority—it is unlikely to be appropriate, at or before that day, to grant the body corporate a section 9 authority that is not subject to a time limit.

2  Subparagraph 9A(3)(a)(iii)

Repeal the subparagraph, substitute:

                            (iii)  of the date by which any submissions must be made; and

3  After subsection 9A(3)

Insert:

          (3A)  The date mentioned in subparagraph (3)(a)(iii) must be:

                     (a)  at least 90 days after the notice under paragraph (3)(a) of this section was given; or

                     (b)  if the section 9 authority is to cease to have effect on a day specified in the authority—at least 21 days after the notice under paragraph (3)(a) of this section was given.

4  Paragraph 9A(8)(b)

Repeal the paragraph, substitute:

                     (b)  a decision to revoke a body corporate’s section 9 authority, unless:

                              (i)  APRA has determined, under subsection (4), that the procedures in subsection (3) do not apply; or

                             (ii)  the section 9 authority is an authority that is to cease to have effect on a day specified in the authority.

5  After section 9C

Insert:

9D   Authority to carry on banking business for a limited time

             (1)  An application under subsection 9(2) may state that the application is for an authority to carry on banking business in Australia for a limited time.

             (2)  If APRA grants an authority under subsection 9(3) as a result of an application made in accordance with subsection (1) of this section:

                     (a)  the authority must state that it ceases to have effect on a day specified in the authority; and

                     (b)  the authority ceases to have effect at the start of that day (except to the extent, if any, that it is continued in effect under subsection 9A(5A) or section 9F, or extended under section 9E), unless it is revoked earlier.

             (3)  The day specified in the authority under paragraph (2)(a) must be:

                     (a)  2 years after the day APRA grants the authority; or

                     (b)  if APRA considers that another day is appropriate—that other day.

             (4)  Despite subsection 9(6), Part VI does not apply to a decision to refuse an application made in accordance with subsection (1) of this section, or to a decision to specify a particular day in the authority under paragraph (2)(a) of this section.

Application for authority not subject to time limit

             (5)  A section 9 authority granted to a body corporate as a result of an application made in accordance with subsection (1) does not prevent the body corporate making, under section 9, a further application for an authority that is not subject to a time limit.

             (6)  If APRA decides to grant such an application, APRA may do so by varying the section 9 authority to remove the time limit that applies to the authority under subsection (2).

9E   Authority to carry on banking business in Australia for a limited time—extension

             (1)  This section applies to a body corporate’s section 9 authority if the authority is to cease to have effect on a day (the expiry day ) specified in the authority.

             (2)  APRA may, at any time before the expiry day, vary the authority to change the expiry day to a later day.

             (3)  If APRA does so, APRA must:

                     (a)  give written notice to the body corporate; and

                     (b)  ensure that notice that the variation has been made is published in the Gazette.

             (4)  A failure to comply with subsection (3) does not affect the validity of the variation.

9F   Authority to carry on banking business in Australia for a limited time—continuation after expiry

             (1)  This section applies to a body corporate’s section 9 authority if the authority is to cease to have effect on a day (the expiry day ) specified in the authority.

             (2)  APRA may, at any time before the expiry day, give the body corporate a written notice stating that the authority continues in effect, on and after the expiry day, in relation to a specified matter or specified period for the purposes of:

                     (a)  a specified provision of this Act or the regulations; or

                     (b)  a specified provision of another law of the Commonwealth that is administered by APRA; or

                     (c)  a specified provision of the prudential standards;

and the statement has effect accordingly.

Part 2 Miscellaneous amendments

Banking Act 1959

6  Paragraphs 11AF(7A)(a) and (b)

Omit “paragraph (1)(d)”, substitute “paragraph (1)(e)”.

7  Paragraph 11AF(7C)(a)

Omit “paragraph (1)(d)”, substitute “paragraph (1)(e)”.