The treasury has released an exposure draft and accompanying explanatory material to introduce the Banking Executive Accountability Regime (Size of an Authorised Deposit Taking Institution) Determination 2018 for public consultation.  The draft legislative instrument provides the mechanism to calculate the size of an authorised deposit taking institution (ADI). This calculation will be used in relation to Treasury’s Banking Executive Accountability Regime (BEAR). BEAR is a new heightened accountability regime applying to ADIs and people with significant influence over the conduct and behaviour of ADIs (known as accountable persons). BEAR will have a staggered application and will be effective in relation to large ADIs from 1 July 2018. BEAR will apply to small and medium ADIs from 1 July 2019. The draft legislative instrument provides that:

  • a small ADI would have less than or equal to $10 billion on a three year average of total resident assets;
  • a medium ADI would have between $10 billion and $100 billion on a three year average of total resident assets; and
  • a large ADI would be any ADI with greater than or equal to $100 billion on a three year average of total resident assets.

The consultation process completed on 20 April 2018.  See Treasury’s media release.  See also Treasurer of Commonwealth of Australia, the Hon Scott Morrison’s media release.