Federal Register of Legislation - Australian Government

Primary content

A Bill for an Act to amend the Banking Act 1959, and for related purposes
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Registered 03 Mar 2020
Introduced Senate 27 Feb 2020
Table of contents.

2019‑2020

 

The Parliament of the

Commonwealth of Australia

 

THE SENATE

 

 

 

 

Presented and read a first time

 

 

 

 

Banking Amendment (Deposits) Bill 2020

 

No.      , 2020

 

(Senator Roberts)

 

 

 

A Bill for an Act to amend the Banking Act 1959, and for related purposes

  

  


Contents

1............ Short title............................................................................................. 1

2............ Commencement................................................................................... 1

3............ Schedules............................................................................................ 2

Schedule 1—Amendments                                                                                                3

Banking Act 1959                                                                                                        3

 

 


A Bill for an Act to amend the Banking Act 1959, and for related purposes

The Parliament of Australia enacts:

1  Short title

                   This Act is the Banking Amendment (Deposits) Act 2020.

2  Commencement

             (1)  Each provision of this Act specified in column 1 of the table commences, or is taken to have commenced, in accordance with column 2 of the table. Any other statement in column 2 has effect according to its terms.

 

Commencement information

Column 1

Column 2

Column 3

Provisions

Commencement

Date/Details

1.  The whole of this Act

The day this Act receives the Royal Assent.

 

Note:          This table relates only to the provisions of this Act as originally enacted. It will not be amended to deal with any later amendments of this Act.

             (2)  Any information in column 3 of the table is not part of this Act. Information may be inserted in this column, or information in it may be edited, in any published version of this Act.

3  Schedules

                   Legislation that is specified in a Schedule to this Act is amended or repealed as set out in the applicable items in the Schedule concerned, and any other item in a Schedule to this Act has effect according to its terms.

Schedule 1Amendments

   

 

Banking Act 1959

1  Section 11CAA

Insert:

bail‑in, in relation to a deposit account, means to convert or write off the deposit account.

2  Section 11CAA (at the end of paragraph (b) of the definition of conversion and write‑off provisions)

Add “(not including a deposit account)”.

3  Section 11CAA

Insert:

deposit account means an account that is kept:

                     (a)  by an account‑holder (whether alone or jointly with one or more other account‑holders) with an ADI; and

                     (b)  under an agreement between the account‑holder and the ADI, requiring the ADI to pay the account‑holder, on demand by the account‑holder or at a time agreed by them, the net credit balance of the account at the time of the demand or the agreed time (as appropriate).

4  After subsection 11CAB(1)

Insert:

          (1A)  To avoid doubt, the reference to an instrument in subsection (1) does not include a deposit account.

5  At the end of Subdivision B of Division 1A of Part II

Add:

11CAD  No bail‑ins of deposit accounts

             (1)  Nothing in this Act or any other Commonwealth law gives APRA power (whether by way of a prudential standard or otherwise) to:

                     (a)  implement a bail‑in of deposit accounts; or

                     (b)  authorise or direct the implementation of a bail‑in of deposit accounts; or

                     (c)  authorise or direct the amendment of any contract, agreement or other instrument to provide for a bail‑in of deposit accounts.