Highlights
— Restricted banking licence granted by the Australian Prudential Regulation Authority
— Business to be known as International Bank of Australia
— Novatti holds a 91% interest in International Bank of Australia
Novatti Group Limited (ASX:NOV) (Novatti or Company), a leading fintech that enables businesses to pay and be paid, is pleased to announce that its dedicated banking subsidiary International Bank of Australia Pty Limited (IBOA), has been granted a Restricted Authorised Deposit-taking Institution (RADI) licence by Australia’s banking regulator, the Australian Prudential Regulation Authority (APRA).
The banking business will launch as the International Bank of Australia.
Managing Director of Novatti, Peter Cook, said: “Being granted a restricted banking licence is a very significant milestone in the delivery of Novatti’s long term strategy, and is the culmination of several years of investment and development.
Read the article: https://www.finnewsnetwork.com.au/companyreports/novatti-group/20221107/novatti-group-to-launch-international-bank-of-australia
What's a
Restricted ADI?
International Bank of Australia is authorised by the Australian Prudential Regulation Authority (APRA) to operate under a Restricted Authorised Deposit-taking Institution licence until 2nd November 2024. Under this authority International Bank of Australia has restrictions on the amount of deposits it can take. Under this restricted licence International Bank of Australia is not required to meet the full ADI prudential framework and will not be offering banking products to the general public.
International Bank of Australia has put in place arrangements to protect customers in the event it is required by APRA to discontinue banking business and exits the banking industry. This includes:
- International Bank of Australia being required by APRA to contact customers to advise how they are impacted, e.g. deposits may be returned or transferred to another bank;
- the Banking Act 1959 provisions for the protection of depositors apply to International Bank of Australia; and
- International Bank of Australia is covered by the Australian Government Financial Claims Scheme (FCS). The FCS applies only to protected accounts. It is important customers check the terms and conditions of their specific product to determine if it is protected under the FCS.
Licensing guidelines for authorised deposit-taking institutions | APRA
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