Restricted Banking Licences: An Opportunity to be Seized
(2018) 29(1) Journal of Banking and Finance Law and Practice 57
13 Pages Posted: 22 Mar 2018 Last revised: 13 Jul 2018
Date Written: January 1, 2018
In August 2017, the Australian Prudential Regulation Authority (APRA) launched a public consultation concerning a new licensing regime for authorised deposit-taking institutions (ADI). This article argues that the new Restricted ADI licences proposed by APRA should, if implemented, serve to promote competition and innovation in Australia’s financial system. However, such promotion must preserve the integrity of the market and, crucially, ensure that Australians are not affected in case of possible failures of the new entrants. The integrity of the new licensing regime, which follows a global trend of creating new opportunities for businesses to enter the banking market, will ultimately depend on APRA’s response to the underlying challenges highlighted in this article.
Note: This article was first published by Thomson Reuters in the Journal of Banking and Finance Law and Practice and should be cited as Anton Didenko, Katharine Kemp, Louise Malady and Ross Buckley, Restricted Banking Licences: An Opportunity to Be Seized, 2018, 29, JBFLP, 57.
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Keywords: Australian Prudential Regulation Authority, APRA, authorised deposit-taking institutions, ADI, authorized deposit-taking institutions, licensing regime, banking market
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