Consultation Response – Minor proposals on Banking Act 1959 Section 66 Instruments
On 18 June 2025, APRA released for consultation a set of minor proposals on instruments relating to section 66 of the Banking Act 1959 (the Act).1 The proposals pertained to exemption and determination instruments that are due to sunset later this year, in accordance with the Legislation Act 2003, or that required updating to reflect current practice.
APRA received four submissions during the consultation, with respondents supportive of the proposals. The feedback received and APRA’s response is summarised in the table below. The final instrument remaking Banking (restricted word or expression) determination No. 1 of 2015 and non-confidential submissions to the consultation are available on APRA’s website.2
| Proposal | Consultation Feedback | APRA’s Response |
|---|---|---|
Banking exemption No. 1 of 2018 Remake the instrument, which provides an exemption for foreign banks issuing wholesale securities, to expand the exempt classes to include foreign bank holding companies and multilateral development banks. | Respondents supported the proposal while also recommending the exemption cover a wider range of entities and wholesale services/activities. | APRA will further consider these recommendations and expects to communicate its position in early 2026. |
Banking (restricted word or expression) determination No. 1 of 2015 Remake the instrument, which determines ‘credit co-operative’ is a restricted expression, without change, prior to the sunsetting date of 1 October 2025. | Support for the proposal. | Finalised: effective 16 September 2025. |
Banking (restricted word or expression) No. 2 of 2015 - Consent regarding “Offshore Banking Unit” Allow the instrument, which provides conditional consent for offshore banking units, to sunset. | Support for the proposal. | Finalised: instrument to sunset 1 October 2025. |
Yours sincerely
Ian Beckett
Acting Executive Director
Policy & Advice Division
Australian Prudential Regulation Authority