Banking License in Australia
Level 1
Australia0
People viewed this LicenseLicense Type
Banking License
RegulatorAPRA
Share CapitalN/A
Deadlines
18 to 36 months(approx.)
Estimated Market Price
From €250,000
Level 1
AustraliaEstimated Market Price
From €250,000
0
People viewed this LicenseLicense Type
Banking License
RegulatorAPRA
Share CapitalN/A
Deadlines
18 to 36 months (approx.)
Level 2
License Details
Explore full requirements, allowed activities, taxation, and operational scope.
Permitted Activities
• Accepting retail and wholesale deposits
• Issuing loans and mortgages
• Providing payment services
• Offering debit and credit cards
• FX and treasury operations
• Investment and wealth management services
Frequently Asked Questions
Clear, concise info to help you understand the process!
A Restricted ADI is a time-limited entry authorisation under the Banking Act 1959, not a working bank. APRA caps a restricted entrant's balance sheet — total assets and total deposits are held far below commercial scale, individual deposit balances are capped, and the restricted period is capped at two years, after which the entity must convert to a full ADI or exit and repay depositors. It cannot build a deposit book or lend at volume in that window, and the clock does not restart on a change of owner. Establish with APRA how much of the restricted period is left before you sign.
The Financial Sector (Shareholdings) Act 1998 sets a 20% limit on a stake in an ADI or its holding company. Going above it requires the Treasurer's approval on national interest grounds, decided case by case rather than granted as a formality. A foreign buyer also needs Foreign Investment Review Board clearance under the Foreign Acquisitions and Takeovers Act 1975, and APRA separately assesses the acquirer, the proposed directors and the responsible persons under its fit and proper standard. Three approvals run in parallel and one of them is political rather than technical.
The Financial Claims Scheme covers deposits in Australian-incorporated ADIs up to a fixed amount per account holder per ADI, and it is activated by the government only if an ADI actually fails. It is funded after the event, so there is no standing premium sitting in the target's accounts, but APRA can levy the industry to recover a payout. Branches of foreign banks operating in Australia sit outside the scheme, which is why they are barred from taking small retail deposits. Check which legal form the target holds before assuming cover.
An ADI authorisation makes an Exchange Settlement Account with the Reserve Bank possible, but the RBA applies its own eligibility criteria and the account is a separate application with its own conditions. Membership of the New Payments Platform and its Osko overlay is granted by the scheme operator with capital, technical and certification requirements attached, and many small ADIs reach NPP through a sponsoring bank rather than directly. The legacy bulk direct entry system is being decommissioned, so a target still dependent on direct entry files carries an unfunded migration project.
It permits banking business — taking deposits and lending — but it does not cover dealing in or advising on financial products, which needs an Australian Financial Services Licence from ASIC, nor consumer lending, which needs an Australian Credit Licence under the National Consumer Credit Protection Act 2009. APRA and ASIC are separate regulators with separate registers, and an acquired bank can hold one authorisation and not the others. Changing the business model after closing is itself a matter for APRA, which authorised the entity against the specific plan it was shown.
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