The Australian Treasury has released and completed its consultation process on its Exposure Draft and accompanying Explanatory Material for the Banking Executive Accountability Regime (Size of an Authorised Deposit-taking Institution) Determination 2018.
This draft legislative instrument defines what small, medium and large Authorised Deposit-Taking Institutions (ADIs) under the Banking Executive Accountability Regime (BEAR) are:
- 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.
These thresholds are consistent with those set out the revised Explanatory Memorandum for the BEAR legislation that passed Parliament in February 2018, and which we have already reported on in a previous Regulation Tomorrow blog entitled “The BEAR Awakens!”. So there are no surprises.
These thresholds are subject to indexation.
Given that BEAR will commence on 1 July 2018, we expect that this instrument will become law in the very near future.