The Australian Prudential Regulation Authority (APRA) has opened consultation on proposed changes to its authorised deposit-taking institution (ADI) licensing framework aimed at simplifying and speeding up the licensing process and better supporting new entrants to the banking sector. The package would replace existing licensing expectations in guidelines with a more explicit and targeted set of formal licensing criteria. APRA also proposes a more time-bound and transparent process: applicants would have 12 months from submitting an application to demonstrate they meet the new criteria, after which APRA would target a licensing decision within three months and publish all decisions. In addition, APRA is seeking feedback on the future of the Restricted ADI (RADI) pathway, citing limited take-up and noting the pathway has not been as simple and effective as intended. Submissions are open until 31 October 2025, with the proposals set out in APRA’s discussion paper on improving the ADI licensing framework.
Australian Prudential Regulation Authority 2025-07-30
Australian Prudential Regulation Authority consults on a streamlined bank licensing framework with explicit criteria and faster decision timelines
The Australian Prudential Regulation Authority (APRA) is consulting on changes to its authorised deposit-taking institution licensing framework to simplify and expedite the process, with a 12-month application period and a three-month decision target. Feedback is sought on the Restricted ADI pathway, with submissions due by 31 October 2025.