APRA has updated the exemptions from the section 66 Banking Act 1959 restriction on use of the word “bank”.
APRA’s Banking exemption No. 2 of 2026 allows foreign entities to use restricted terms when issuing debt securities in wholesale capital markets.
In addition to foreign banks, the list of exempt entities will also include:
* foreign bank holding companies;
* foreign bank treasury companies;
* multilateral development banks; and
* foreign subsidiaries of Australian banking groups.
The exemption is subject to the condition that these entities (or their parents or groups) must be prudentially regulated in their home country (excluding multilateral development banks). Foreign subsidiaries of Australian banking groups must have an Australian parent that is regulated by APRA.
Other foreign entities must individually seek APRA’s consent to be exempt from section 66 which will be granted on a case-by-case basis.
APRA’s guidelines on restricted terms have otherwise not changed.
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Author: David Jacobson
Principal, Bright Corporate Law
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About David Jacobson
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.
