Banking Act 1959
View history note
Hide history noteSubsection (2) applies if:
(a) APRA considers that the Part IIB provision of finance by one or more non-ADI lenders materially contributes to risks of instability in the Australian financial system; and
(b) APRA considers that it is necessary, in order to address those risks, to make rules under subsection (2).
(2)
APRA may, in writing, determine rules for the purpose of addressing those risks, to be complied with by:
(a) all non-ADI lenders; or
(b) a specified class of non-ADI lenders; or
(c) one or more specified non-ADI lenders.
(3)
To avoid doubt, a rule cannot require a non-ADI lender to conduct its business and activities in a particular way to the extent that the business and activities are unrelated to the Part IIB provision of finance.
(4)
A rule may impose different requirements to be complied with in different situations or in respect of different activities.
(5)
Without limiting the matters in relation to which APRA may determine a rule, a rule may require:
(a) each non-ADI lender; or
(b) each non-ADI lender included in a specified class of non-ADI lenders; or
(c) a specified non-ADI lender; or
(d) each of 2 or more specified non-ADI lenders;
to ensure that its subsidiaries (or particular subsidiaries), or it and its subsidiaries (or particular subsidiaries), collectively satisfy particular requirements in relation to the risks mentioned in subsection (1).
(6)
A rule may provide for APRA to exercise powers and discretions under the rule, including (but not limited to) discretions to approve, impose, adjust or exclude specific requirements in relation to one or more specified non-ADI lenders.
(7)
A rule may provide for a matter by applying, adopting or incorporating, with or without modification, any matter contained in an instrument or other writing as in force or existing from time to time, despite:
(a) section 46AA of the Acts Interpretation Act 1901 ; and
(b) section 14 of the Legislation Act 2003 .
(8)
A rule referred to in paragraph (2)(c) has effect:
(a) from the day on which the rule is made; or
(b) if the rule specifies a later day - from that later day.
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