The Australian Prudential Regulation Authority (APRA) has published a discussion paper proposing changes to its authorised deposit-taking institution (ADI) licensing framework to simplify and accelerate licensing, while better supporting new entrants such as banks, credit unions and building societies. The package also seeks views on the future of the Restricted ADI (RADI) pathway. Under the proposals, licensing expectations currently set out in guidance would be replaced with a more explicit and targeted set of formal licensing criteria. 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. APRA’s review found the framework has supported new entry while maintaining robust standards, but identified scope to improve clarity, transparency and efficiency; it noted the RADI pathway has had limited take-up and has not been as simple and effective as intended. Consultation is open until 31 October 2025.
Australian Prudential Regulation Authority 2025-07-30
Australian Prudential Regulation Authority consults on streamlined ADI licensing criteria and tighter decision timelines
The Australian Prudential Regulation Authority (APRA) proposes revisions to its ADI licensing framework to streamline and expedite the process for new entrants like banks and credit unions. The changes include explicit licensing criteria, a 12-month compliance requirement, and a three-month decision timeline. The review notes the framework's success but seeks improved clarity and efficiency, citing limited use of the Restricted ADI pathway.