APRA Ends International Bank of Australia's Restricted Licence
APRA Ends International Bank of Australia's Restricted Licence
1
The information on this website is general in nature and does not take into account your objectives, financial situation, or needs. Consider seeking personal advice from a licensed adviser before acting on any information.
The Australian Prudential Regulation Authority (APRA) has complied with a request by International Bank of Australia Pty Limited to terminate its restricted licence as an authorised deposit-taking institution (ADI).
Similarly, IBOA Group Holdings Pty Ltd (IBOA Holdings) has rescinded its status as a non-operating holding company (NOHC).
This information is according to a recent update from APRA's official channels.
Previously, in November 2022, APRA granted the licences under the Banking Act 1959, providing International Bank of Australia the restricted ADI status and offering IBOA Holdings NOHC credentials. Despite these opportunities, the bank never moved forward with launching any products, nor did it establish customer relationships or attract any deposits during this period.
The specific reasons behind International Bank of Australia’s decision to relinquish its restricted ADI licence remain speculative. However, industry experts suggest it could be a strategic shift in focus or re-evaluation of the Australian market landscape. It is important to note that this decision does not close the door for any future applications the bank might make to re-enter the ADI or restricted ADI landscape.
This instance highlights a rare, yet noteworthy, event where a financial institution pulls back after initial regulatory approval but before market penetration. It provides a contrast to other emerging banks that take swift action post-approval to acquire market share and customer base.
For those keeping an eye on regulatory activities and ADI listings, APRA maintains updated records of all such authorised entities. The registers of authorised deposit-taking institutions and non-operating holding companies can be accessed openly on the APRA website. Financial services observers will find these registers an essential tool for staying updated on the operational status of various financial institutions.
Published:Tuesday, 1st Oct 2024 Source: Paige Estritori
Please Note: If this information affects you, seek advice from a licensed professional.
Australian small and medium-sized enterprises (SMEs) are pivotal to the nation's economy, representing only 6% of all businesses yet contributing 26% to the Gross Domestic Product (GDP). Despite their significance, these businesses face a substantial barrier: a $38 billion equity funding gap that stifles their growth potential. - read more
The Australian Securities and Investments Commission (ASIC) has reported a significant uptick in small business restructurings (SBR), with 3,388 appointments between July 2022 and December 2024. This marks an almost 20-fold increase compared to the previous period, indicating that more directors are embracing this regime to retain control while restructuring debt. - read more
Starting a small business is an exciting venture, but it requires careful planning to ensure long-term success. One of the foundational steps in this journey is creating a solid business plan. A business plan serves as a roadmap, guiding your actions and decisions as you build and grow your business. - read more
Starting a business is a formidable venture, and securing the necessary capital to transform a vision into reality is often one of the first major hurdles that Australian entrepreneurs face. With a myriad of financing options available, it is essential to navigate the startup financing landscape in Australia with a keen understanding of not only the opportunities but also the challenges it presents. - read more
Need Help Finding a Loan?
All finance quotes are provided free (via our secure server) and without obligation. We
respect your
privacy.
Knowledgebase
Asset Allocation: An investment strategy that aims to balance risk and reward by apportioning a portfolio's assets according to an individual's goals, risk tolerance, and investment horizon.
