Australia - Apply for a Banking Business license

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Procedure

Apply In Person

1. To Apply for a Banking Business license, the applicant has to approach the Australian Prudential Regulation Authority link
2. Familiarize yourself with the regulatory framework, guidelines, and requirements for obtaining a banking license in Australia. This includes understanding the Banking Act 1959, prudential standards, and APRA's licensing requirements.
3. Engage in pre-application discussions with APRA to seek guidance, clarify requirements, and ensure that your application aligns with APRA's expectations.
4. An application form will be provided to the applicant by the concerned officer.
5. The applicant has to fill in all the necessary details in the application form. (Incomplete applications are not accepted)
6. Make sure that the applicant has attached all the necessary documents that are mentioned in the “Required Documents” section of this page.
7. The applicant has to attach the photocopies of the required documents along with the application form while submitting.
8. Submit all the documents with the completed form to the concerned officer.
9. The applicant has to pay the prescribed fee as requested by the authority.
10. After receiving the application, the concerned authority will check the submitted application and document set. If all are in place, the application will be accepted.
11. Then the application will be processed further. All the updates on the application status will be sent via SMS to the applicant’s mobile number or through email.
12. Once the process gets completed, the applicant gets a call from the office regarding the application.
13. APRA will conduct a thorough assessment of your application, including evaluating your business plan, financials, risk management framework, governance structure, compliance procedures, and fit and proper assessments.
14. APRA may conduct additional due diligence, including background checks on key individuals, onsite visits, and interviews with management personnel.
15. They may also seek feedback from other regulatory bodies and conduct a review of your proposed banking business.
16. Following the assessment and review process, APRA will make a decision on your application. If approved, you will receive a banking business license.
17. Once licensed, you will need to comply with ongoing reporting requirements, prudential standards, and regulatory obligations set by APRA.
18. This includes regular financial reporting, risk reporting, compliance reporting, and participation in APRA's supervision and monitoring processes.
19. This entire process can be completed within 3 – 4 weeks or as per the timeline advised by the respective department authority.

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Required Documents

• Application form
• ID proof (Birth Certificate, national Identity card, etc)
• Address proof – (Driving license, passbook, utility bill, etc)
• Fee receipt
• Detailed business plan
• Financial statement
• Governance and management structure
• Fit and proper assessments
• Compliance framework
• Risk management framework
• Any other documents (If required)

Office Locations & Contacts

Australian Prudential Regulation Authority
Level 12
1 Martin Place
Sydney NSW 2000
GPO Box 9836
Sydney NSW 2001
Phone - +61 2 9210 3000
International + 61 2 8037 9015
Fax +61 2 9210 3411
Contact link

Eligibility

To be eligible to apply for a banking business license in Australia, you must meet the following criteria:

• You must be a corporation incorporated in Australia.
• You must have a minimum Tier 1 capital of AUD 50 million.
• You must have a sound financial position and be able to meet the financial obligations of the licence.
• You must have the necessary experience and expertise to operate a banking business.
• You must have a management plan that outlines how you will operate the banking business in a safe and sound manner.
• You must be of good fame and character.

Fees

• The applicant has to pay the prescribed fee as requested by the authority.

Validity

Explain the time until which the certificate/document is valid.
e.g. Birth Certificate Valid Forever

Documents to Use

Please attach documents that can be used by people. e.g. links

Sample Documents

Please attach sample completed documents that would help other people.

Processing Time

• This entire process can be completed within 3 – 4 weeks or as per the timeline advised by the respective department authority.

Related Videos

Videos explaining the procedure or to fill the applications.
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Please remove the '&' inside the tags during implementation.
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sevenload, viddler, vimeo, youku, youtube
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e.g In the following url 'http://www.youtube.com/watch?v=Y0US7oR_t3M' Video ID is 'Y0US7oR_t3M'.

Instructions

• Applicants must complete the application form before submitting it. Incomplete applications will not be accepted.
• Applicants must provide genuine information while applying for this procedure.

Required Information

• Name
• Surname
• Age
• Date of Birth
• Gender
• Residential Address
• Residential No
• Mobile No
• Email Address
• Income details
• Business details
• Fax
• Declaration
• Date
• Signature

Need for the Document

• In Australia, a banking business license refers to the legal authorization granted by the regulatory authorities to operate as a bank or carry out banking activities within the country.
• This license is typically issued by the Australian Prudential Regulation Authority (APRA), which is the primary regulatory body responsible for overseeing the banking sector in Australia.

Information which might help

• Obtaining a banking business license is a rigorous process that involves meeting specific requirements and demonstrating compliance with regulatory standards and prudential guidelines.
• The license grants the authorized entity the right to engage in various banking activities, including accepting deposits from the public, providing lending services, conducting financial transactions, and offering a range of banking products and services.

Other uses of the Document/Certificate

Please explain what are other uses for obtaining this document/certificate.
e.g. Birth Certificate can be used as proof of identity.

External Links

Link

Others

• A banking business license is crucial for establishing a financial institution that operates as a bank in Australia. It signifies that the institution has met the necessary regulatory criteria, financial stability, risk management capabilities, and corporate governance standards to conduct banking operations.