BANKING ACT 1959
Table of Provisions
PART I--PRELIMINARY
- 1 Short title
- 2 Commencement
- 2A Main objects of this Act
- 4 Repeal
- 5 Interpretation
- 6 Application of Act
- 6A Cessation of application of Act to Territory
- 6B Application of
PART II--PROVISIONS--RELATING TO THE CARRYING ON OF BANKING BUSINESS
DIVISION 1--Authority to carry on banking business- 7 Person other than a body corporate must not carry on banking business
- 8 Only the Reserve Bank and bodies corporate that are ADIs may carry on banking business
- 9 Authority to carry on banking business
- 9AA Conditions on an authority
- 9AB Breach of authority conditions
- 9A Revocation of authority etc.
- 9B Bodies that cease to exist or change their names
- 9C Publication of list of ADIs
- 9D Authority to carry on banking business for a limited time
- 9E Authority to carry on banking business in Australia for a limited time--extension
- 9F Authority to carry on banking business in Australia for a limited time--continuation after expiry
- 10 APRA to be supplied with certain documents
- 11 APRA may determine that provisions of this Act do not apply DIVISION 1AA--Authority to be a NOHC of an ADI
- 11AA Authority to be a NOHC
- 11AAA Conditions on an authority
- 11AAB Breach of authority conditions
- 11AB Revocation of authority etc.
- 11AC Bodies that cease to exist or change their names
- 11AD Publication of list of NOHCs
- 11AE APRA may give notice to ensure that ADI has an authorised NOHC DIVISION 1A--Prudential supervision and monitoring of ADIs and authorised NOHCs
- 11AF APRA may make prudential standards for ADIs and authorised NOHCs
- 11AG Obligation to comply with the prudential standards
- 11A Prudential requirements may also be prescribed by the regulations
- 11B APRA to monitor prudential matters
- 11C Division not to limit operation of other provisions
- 11CAA Definitions
- 11CAB Conversion and write-off provisions
- 11CAC Conversion or write-off etc. not grounds for denial of obligations DIVISION 1BA--APRA's power to issue directions
- 11CA APRA may give directions in certain circumstances
- 11CB APRA may certify an industry support contract
- 11CC APRA may direct parties to an industry support contract to comply with the contract
- 11CD Direction not grounds for denial of obligations
- 11CE Supply of information about issue and revocation of directions
- 11CG Non-compliance with a direction
- 11CH APRA may determine that a direction is covered by secrecy provision
- 11CI Secrecy relating to directions
- 11CJ Disclosure of publicly available information
- 11CK Disclosure allowed by APRA
- 11CL Disclosure to legal representative for purpose of seeking legal advice
- 11CM Disclosure allowed by APRA Act secrecy provision
- 11CN Disclosure in circumstances set out in the regulations
- 11CO Disclosure for purpose
- 11CP Exceptions operate independently DIVISION 1B--Provisions relating to certain ADIs
- 11E Limited application of Division 2 etc. to foreign ADIs
- 11EA APRA's power to apply for foreign ADI to be wound up
- 11F Assets of foreign ADIs DIVISION 2--Protection of depositors
- 12 APRA to protect depositors
- 13 ADI to supply information to APRA
- 13A Consequences of inability or failure of ADI etc. to meet certain requirements
- 13B Investigators--ADI must provide information and facilities
- 13BA Start of control of body corporate's business by Banking Act statutory manager
- 13C Banking Act statutory managers--termination of control
- 13D Who this Subdivision applies to
- 13E Recapitalisation direction by APRA
- 13F Additional contents of a recapitalisation direction
- 13G Compliance with a recapitalisation direction
- 13H APRA must obtain expert's report on the fair value of shares etc.
- 13J Determination of the fair value of shares by an expert
- 13K Determination of the fair value of rights by an expert
- 13L Ascertaining the fair value of other capital instruments
- 13M Contravention of certain provisions does not affect the validity of recapitalisation direction etc.
- 13N Recapitalisation direction not grounds for denial of obligations
- 13P Supply of information about issue and revocation of recapitalisation directions
- 13Q Non-compliance with a recapitalisation direction
- 13R Exceptions to Part IV of the
- 14A Banking Act statutory manager's powers and functions
- 14AAA Safeguards on exercise of Banking Act statutory manager's powers and functions
- 14AA Banking Act statutory manager's additional powers to facilitate recapitalisation
- 14AB Considering report before acting under section 14AA
- 14AC Act under section 14AA not ground for denial of obligations
- 14AD APRA may require a person to give information etc. for the purposes of this Division
- 14B Administrator in control--additional powers to recommend action by APRA
- 14C Banking Act statutory manager's liabilities and duties
- 14CA Transaction by Banking Act statutory manager not voidable under section 588FE of the
- 14D Administrator in control--additional duties
- 14DAA Administrator in control--additional duties where action may affect financial system stability in Australia
- 14DA Administrator in control--additional duties where action may affect financial system stability in New Zealand
- 14E Termination of administrator's appointment
- 15 Effect on directors of Banking Act statutory manager taking control of a body corporate's business
- 15A Effect on external administrator of Banking Act statutory manager taking control of a body corporate's business
- 15B Moratorium--effect of Banking Act statutory management on court and tribunal proceedings
- 15BA Moratorium--effect of Banking Act statutory management on enforcement process regarding property
- 15BB Moratorium--effect of Banking Act statutory management on disposal of property
- 15BC Moratorium--restrictions on exercise of third party property rights
- 15BD Moratorium--effect of Banking Act statutory management on supply of essential services
- 15BE Moratorium--effect of Banking Act statutory management on annual general meeting
- 15C Certain circumstances not grounds for denial of obligations
- 15D Application of other provisions
- 16 Costs of statutory management
- 16A APRA must report to Treasurer and publish information about statutory management
- 16AA Exceptions to Part IV of the
- 16AAA APRA's powers to apply for ADI to be wound up DIVISION 2AA--Financial claims scheme for account-holders with insolvent ADIs
- 16AB Purpose of this Division
- 16AC APRA's functions relating to this Division
- 16AD Declaration that Subdivision C applies in relation to ADI
- 16AE Advice and information for decision on making declaration
- 16AF Payment of account-holders with declared ADI
- 16AG Limit on payments to account-holder with declared ADI
- 16AH Payment
- 16AHA Giving information about payments in a financial year
- 16AI Substitution of APRA for account-holder as ADI's creditor
- 16AIA APRA may make transferred liabilities determination where transfer of business
- 16AIB Payment amounts under transferred liabilities determination
- 16AIC Consequences of transferred liabilities determination once certificate of transfer issued
- 16AJ Requiring assistance
- 16AK Obtaining information relevant to determining and paying entitlements
- 16AL Enforcing requirement for assistance or information
- 16AM Recovery of overpayments
- 16AN APRA may delegate functions and powers under this Division
- 16AO APRA's costs of administration
- 16AP When this Subdivision applies
- 16AQ Liquidator may admit debt or claim without normal proof
- 16AR How liquidator must pay distributions to account-holder
- 16AS APRA may disclose relevant personal information to liquidator
- 16AT APRA or liquidator to disclose information to ADI
- 16AU Exceptions to Part IV of the DIVISION 2A--Auditors of ADIs and authorised NOHCs and their subsidiaries
- 16AV Appointed auditor's functions and duties
- 16B Auditors to give information to APRA on request
- 16BA Requirement for auditors to give information about ADIs
- 16C Auditor may provide information to APRA
- 16D Appointed auditor must notify APRA of attempts to unduly influence etc. the appointed auditor
- 16E Giving false or misleading information to auditor DIVISION 2B--Removal of auditors of ADIs
- 17 APRA may remove an auditor of an ADI
- 18 Referring matters to professional associations for auditors DIVISION 2C--Enforceable undertakings
- 18A Enforceable undertakings DIVISION 3--Governance
- 19 Disqualified persons must not act for ADIs or authorised NOHCs
- 20 Who is a?
- 21 Court power of disqualification
- 22 Court power to revoke or vary a disqualification etc.
- 22A Privilege against exposure to penalty--disqualification under section 21
- 23 APRA may remove a director or senior manager of an ADI or authorised NOHC DIVISION 3A--Covered bonds
- 24 Guide to this Division
- 25 Application of Division
- 26 Covered bonds
- 27 Arrangements involving several ADIs
- 28 Restrictions on issuing covered bonds--8% rule
- 29 Restrictions on issuing covered bonds--APRA directions
- 30 Cover pool monitors
- 31 Assets that may be in cover pools
- 31A Maintenance of cover pools
- 31B Protection of certain contractual rights
- 31C Powers and obligations of Banking Act statutory manager or external administrator
- 31D Prudential standards--treatment of assets and liabilities
- 31E Prudential standards for covered bonds
- 31F APRA may direct covered bond special purpose vehicles to return certain assets DIVISION 4--Mobilization of foreign currency
- 32 Interpretation
- 33 Transfer of foreign currency to Reserve Bank
- 34 Payment for transferred foreign currency
- 35 Sale of foreign currency by Reserve Bank DIVISION 5--Advances
- 36 Advance policy
PART IIAA--THE--BANKING EXECUTIVE ACCOUNTABILITY REGIME
DIVISION 1--Obligations under the Banking Executive Accountability Regime- 37 Obligations of ADIs
- 37A Minister may exempt ADIs
- 37AA Inconsistency with corresponding foreign laws
- 37B Obligations of accountable persons
- 37BA Meaning of
- 37BB Exception for responsibilities excluded by APRA
- 37BC Inconsistency with corresponding foreign laws DIVISION 2--Accountability obligations
- 37C The accountability obligations of an ADI
- 37CA The accountability obligations of an accountable person
- 37CB Taking reasonable steps DIVISION 3--Key personnel obligations
- 37D The key personnel obligations of an ADI
- 37DA People prohibited from being an accountable person
- 37DB APRA may direct an ADI to reallocate responsibilities DIVISION 4--Deferred remuneration obligations
- 37E The deferred remuneration obligations of an ADI
- 37EA Meaning of
- 37EB Minimum amount of variable remuneration to be deferred
- 37EC Minimum period of deferral
- 37ED Exemption for small amounts of variable remuneration DIVISION 5--Notification obligations
- 37F The notification obligations of an ADI
- 37FA Accountability statements
- 37FB Accountability map
- 37FC Events for which APRA must be notified DIVISION 6--Enforcement and administration
- 37G Pecuniary penalty for non-compliance with this Part
- 37H Register of accountable persons
- 37HA Registration of a person as an accountable person
- 37J APRA may disqualify an accountable person
- 37JA APRA may vary or revoke a disqualification
- 37JB Self-incrimination
- 37JC Allowing a person disqualified by APRA to act as an accountable person DIVISION 7--Miscellaneous
- 37K General administration of this Part
- 37KA Indemnifying ADIs and accountable persons
- 37KB Causes of action not created
PART IIA--ADI--MERGERS (OPERATION OF STATE AND TERRITORY LAWS)
PART IIB--PROVISIONS--RELATING TO THE NON-ADI LENDERS
DIVISION 1--Main concepts- 38B Meaning ofand DIVISION 2--Non-ADI lender rules
- 38C APRA may make non-ADI lender rules for non-ADI lenders
- 38D Non-ADI lender rules revoked after 2 years
- 38E Variation and revocation of non-ADI lender rules
- 38F Notification and consultation regarding non-ADI lender rules
- 38G Which non-ADI lender rules, etc., are legislative instruments
- 38H Review of decisions relating to non-ADI lender rules
- 38J Division not to limit operation of other provisions DIVISION 3--APRA's power to issue directions
- 38K APRA may give directions in certain circumstances
- 38L Non-compliance with a direction under section 38K
PART III--FOREIGN--EXCHANGE, FOREIGN INVESTMENT ETC.
- 39 Power to make regulations
- 39A Extra-territorial application of regulations
PART IV--GOLD
- 40 Operation of Part
- 41 Transfer of gold out of Australia
- 42 Delivery of gold
- 43 Vesting of gold delivered
- 44 Payment for gold
- 45 Limitation of sale and purchase of gold
- 46 Limitation on working of gold
- 47 Application of Part
- 48 Exemptions
PART V--INTEREST--RATES
- 50 Control of interest rates
PART VI--RECONSIDERATION--AND REVIEW OF DECISIONS
- 51A Definitions
- 51B Reconsideration of decisions
- 51C Review of decisions
- 51D Statements to accompany notification of decisions
PART VIA--PROTECTIONS--IN RELATION TO INFORMATION
- 52F Self-incrimination
PART VII--FINANCIAL--RECORDS
- 60 Keeping of financial records
PART VIII--POWERS--OF APRA
DIVISION 1--Investigations- 61 APRA may conduct investigations
- 61A Investigator may require production of books etc.
- 61B Concealing books, accounts or documents relevant to investigation DIVISION 2--Examinations
- 61C Notice requiring appearance for examination
- 61D Conduct of examinations
- 61E Who may be present at examinations
- 61F Record of examination
- 61G Offences DIVISION 3--Evidentiary use of certain material
- 61H Statements made at an examination--proceedings against examinee
- 61J Statements made at an examination--other proceedings
- 61K Weight of evidence under section 61J
- 61L Objection to admission of statements made at examination
- 61M Copies of, or extracts from, certain books, accounts and documents
- 61N Report under section 61
- 61P Exceptions to admissibility of report
- 61Q Material otherwise admissible DIVISION 4--Information
- 62 Supply of information DIVISION 5--Miscellaneous
- 62AA Legal professional privilege
- 62AB Powers of Court relating to non-compliance with this Act
PART IX--MISCELLANEOUS
- 62A Notices to APRA
- 62B Involving APRA in proposed appointment of external administrators of ADIs and NOHCs
- 62C Involving APRA in applications by liquidator
- 62D Application by APRA for directions
- 62E APRA may request information from liquidator
- 63 Restructuring of ADIs
- 64 Conditions on consent to restructure an ADI
- 65 ADIs etc. may be directed to comply with Act
- 65A Injunctions
- 65B Civil penalties
- 66 Restriction on use of certain words and expressions
- 66AA Use of the wordby ADIs
- 66A Restriction on use of expressionsand
- 67 Restriction on establishment or maintenance of representative offices of overseas banks
- 68 Bank holidays
- 69 Unclaimed moneys
- 69A Disclosure of information relating to unclaimed moneys
- 69B Powers about money of depositors who have died
- 69BA Institution of offence proceedings no bar to winding up
- 69C Conduct of directors, employees and agents
- 69D Disclosure of information received under Act prohibited in certain circumstances
- 69E Compensation for acquisition of property
- 69F Severability
- 70A Protection from liability--general
- 70AA Protection from liability--directions and secrecy
- 70AB Protection from liability--provisions do not limit each other
- 70B Act has effect despite the Corporations Act
- 70C Authorising contracts etc. for protecting depositors' interests and financial system stability
- 70D Borrowing funds for payments under authorised contracts etc.
- 70E Financial System Stability Special Account
- 70F Credits to the Account
- 70G Purposes of the Account
- 70H Debits to reflect reduced amounts specified in authorisations
- 71 Regulations