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ISCOVER
Staff Reporter
Bankwest has been given the green light to operate under the Commonwealth Bank of Australia’s banking licence.
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Earlier this year, the Australian Prudential Regulation Authority required Bankwest to cease operating as a separate company and operate under the same banking licence as CBA, or raise funds under its own Authorised Deposit-taking Institution licence.
However, for Bankwest to start operating under CBA’s licence, legislation needed to be passed in the Western Australia State Parliament – a milestone that has now been achieved.
Late last week, the changes in legislation, which will arguably strengthen Bankwest’s financial and operational commitments, were passed in the State Parliament.
Premier and Treasurer Colin Barnett said the legislation was designed to enable Bankwest and CBA to comply with Federal regulations requiring them to operate under a single banking licence.
Mr Barnett said key commitments already in the existing legislation would be maintained and updated, including continuing to carry on the type and scale of Bankwest’s business at June 2011 levels and keeping the location of the head office and management in WA.
The legislation also means that, for a period of at least five years, Bankwest will be required to maintain a specified minimum number of points of presence in WA, with no closure of regional branches except for amalgamations or relocations in a local area.
In addition, the lender will have to maintain four specified senior officers, in addition to the managing director, in WA.
