Treasury is consulting on the draft Banking Regulations 2026, which will replace the Banking Regulations 2016.

The draft regulations increase the covered bond issuance limit for authorised deposit-taking institutions (ADIs) to 12 per cent of an ADI’s assets. The current limit is 8 per cent.

The draft regulations also prescribe that the provision of a purchased payment facility in certain circumstances is a prescribed financial activity for the purposes of the definition of ‘banking business’ in subsection 5(1) of the Banking Act.

Regulation 26 which prescribes the amount of $500 for the annual statement of unclaimed moneys under subsection 69(3) of the Banking Act, is substantively the same as the corresponding provision in the 2016 Regulations.

There is no change to the Financial Claims Scheme limit on payments of $250,000 or the prescribed protected accounts for the purposes of meeting an entitlement for the payment of an account-holder with an ADI.

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Author: David Jacobson
Principal, Bright Corporate Law
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The information contained in this article is not legal advice. It is not to be relied upon as a full statement of the law. You should seek professional advice for your specific needs and circumstances before acting or relying on any of the content.