Regu Report
Monday, October 6, 2025
  • Finance
    • Financial Services
    • Insurance
    • Superannuation
    • Economy
    • Productivity
  • Legal
    • Competition
    • Privacy
    • Intellectual Property
    • Employment & Workplace Relations
    • Communications
    • Human Rights
    • Law Reform
  • Corporate
  • Property
  • Science
    • Environment
    • Technology
  • Agriculture
  • Transport
  • Sport
No Result
View All Result
  • Finance
    • Financial Services
    • Insurance
    • Superannuation
    • Economy
    • Productivity
  • Legal
    • Competition
    • Privacy
    • Intellectual Property
    • Employment & Workplace Relations
    • Communications
    • Human Rights
    • Law Reform
  • Corporate
  • Property
  • Science
    • Environment
    • Technology
  • Agriculture
  • Transport
  • Sport
No Result
View All Result
Regu Report
No Result
View All Result
Home Finance

APRA suggests reforms for a streamlined and efficient bank licensing process

Jenny Goodwin by Jenny Goodwin
26 August 2025
in Finance, Financial Services
Reading Time: 2 mins read
0
12
SHARES
105
VIEWS
Share on LinkedInShare on FacebookShare on X

The Australian Prudential Regulation Authority (APRA) has announced proposed changes to its bank licensing framework, aiming to streamline and expedite the licensing process while enhancing support for new entrants to the banking sector.

APRA oversees the licensing of new banks, credit unions, and building societies, collectively referred to as authorised deposit-taking institutions (ADIs). The authority seeks to balance the support for new entrants and competition with the necessity of maintaining robust regulatory standards that ensure financial safety and stability.

RELATED POSTS

ASIC wins travel ban and asset freeze in First Guardian probe

Beacon Minerals insider trading: Darryl Mapleson sentenced

In 2018, APRA amended the ADI licensing framework to foster competition and innovation in banking, notably by introducing the Restricted ADI (RADI) pathway. Following a recent review, APRA has sought to evaluate the framework’s effectiveness in light of the experiences of new entrants and adapt it to a rapidly changing operational environment.

The review concluded that the current framework has largely been successful in facilitating new entries into the banking sector while upholding stringent regulatory standards. However, it also identified several opportunities for enhancement, particularly in increasing the efficiency of the licensing process through clearer expectations and defined timeframes.

To this end, APRA is proposing two significant improvements to its ADI licensing framework. Firstly, it aims to establish clearer licensing expectations by replacing the current guidelines with a more targeted set of formal criteria. Secondly, the licensing decisions would be expedited: applicants would have 12 months from the submission of their application to demonstrate compliance with the new criteria, after which APRA would target a licensing decision within three months, with all decisions made public.

Moreover, APRA is inviting feedback on the future of the RADI pathway, which has seen limited uptake in recent years. Although the authority acknowledges that this pathway has contributed to encouraging new bank entrants, it admits that it has not been as straightforward or effective as initially intended.

APRA Member Therese McCarthy Hockey expressed optimism about the proposed changes, stating that they would make the licensing process more straightforward and efficient for applicants, positioning newly licensed banks for better sustainability.

“Although the success of a new bank is ultimately determined by the viability of its business model and product offering, it is important that the licensing process is not unnecessarily burdensome and supports timely entry into the banking sector,” she noted. “Our intention is for these changes to help aspiring banks navigate the licensing process more efficiently and reduce the time and cost associated with obtaining a banking licence.”

These proposals are part of APRA’s broader strategy to enhance competition and efficiency within the banking sector, aligning with the objectives of the Council of Financial Regulators and the Australian Competition and consumer Commission’s recent review concerning small and medium-sized banks.

Tags: ADIAPRAcompetitionconsumerTherese McCarthy Hockey
Share1Share5Tweet3ShareSend
Jenny Goodwin

Jenny Goodwin

Jenny Goodwin is a journalist with a focus on banking, insurance and superannuation. She is driven by a passion for making complex financial systems accessible and reporting on the policies and changes that affect businesses and consumers.

Related Posts

Federal Court extends asset freeze on First Mutual Private Equity and director Gregory Cotton to safeguard investor funds

ASIC wins travel ban and asset freeze in First Guardian probe

by Maddie Crawley
4 October 2025
0

The Federal Court has imposed interim travel bans on Falcon Capital Limited directors David Anderson and Simon Selimaj and ordered...

Federal Court extends asset freeze on First Mutual Private Equity and director Gregory Cotton to safeguard investor funds

Beacon Minerals insider trading: Darryl Mapleson sentenced

by Maddie Crawley
4 October 2025
0

Geological services provider Darryl Brian Mapleson has been sentenced to 12 months’ imprisonment for insider trading, with the Supreme Court...

Updated land cover data better reflects a changing landscape

Nine insights into Aboriginal and Torres Strait Islander peoples’ nutrition

by Sophia Merrick
3 October 2025
0

The Australian Bureau of Statistics has released its first detailed snapshot of nutrition among Aboriginal and Torres Strait Islander peoples...

ACCC clears acquisition of BGC Cementitious after changes to deal

Telstra fined $18 million for misleading Belong customers about broadband speeds

by Catarina Brooks
3 October 2025
0

The Federal Court has ordered Telstra to pay an $18 million penalty after the company moved almost 9,000 Belong customers...

Federal Court extends asset freeze on First Mutual Private Equity and director Gregory Cotton to safeguard investor funds

ASIC cancels Velos Global Markets’ financial services licence

by Maddie Crawley
3 October 2025
0

The corporate regulator has cancelled the Australian Financial Services licence of Velos Global Markets Pty Ltd (ACN 604 251 416),...

Next Post

APRA unveils revisions to macroprudential settings

Former Gold Coast property developer jailed for eight years over superannuation fund fraud

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

RECOMMENDED

CSIRO launches R&D program for critical minerals SMEs

CSIRO launches R&D program for critical minerals SMEs

4 October 2025
Federal Court extends asset freeze on First Mutual Private Equity and director Gregory Cotton to safeguard investor funds

ASIC wins travel ban and asset freeze in First Guardian probe

4 October 2025
  • 100 Followers

MOST VIEWED

  • Glass repair operators hit with $116,550 in penalties

    12 shares
    Share 5 Tweet 3
  • TAB hit with $4m penalty for spamming VIP customers

    12 shares
    Share 5 Tweet 3
  • Western Sydney café’s former operators appear in court

    12 shares
    Share 5 Tweet 3
  • Power bank recalls surge amid reports of severe burns and property damage

    12 shares
    Share 5 Tweet 3
  • Home values up 1.9% in June

    12 shares
    Share 5 Tweet 3
Regu Report

Bringing you the latest news from the world of regulation, compliance, corporate governance and industry in Australia.

TOPICS

  • Agriculture
  • Communications
  • Competition
  • Corporate
  • Economy
  • Employment & Workplace Relations
  • Environment
  • Finance
  • Financial Services
  • Human Rights
  • Insurance
  • Law Reform
  • Legal
  • Privacy
  • Property
  • Science
  • Superannuation
  • Technology

INFORMATION

  • About Us
  • Terms of Service
  • Privacy Policy
  • Contact Us
  • About Us
  • Terms of Service
  • Privacy Policy
  • Contact Us

© 2025 Regu Report.

No Result
View All Result
  • Homepages
    • Homepage Layout 1
    • Homepage Layout 2

© 2025 Regu Report.