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This is a Bill, not an Act. For current law, see the Acts databases.
BANKING AMENDMENT (CONTROLS ON VARIABLE INTEREST RATE CHANGES) BILL 2010
2010
The Parliament of the
Commonwealth of Australia
THE SENATE
Presented and read a first time
Banking Amendment (Controls on
Variable Interest Rate Changes) Bill
2010
No. , 2010
(Senator Bob Brown)
A Bill for an Act to amend the Banking Act 1959 to
place controls on changes in the variable interest
rates of ADIs, and for related purposes
i Banking Amendment (Controls on Variable Interest Rate Changes) Bill 2010 No. ,
2010
Contents
1 Short
title
...........................................................................................
1
2 Commencement
.................................................................................
1
3 Schedule(s)
........................................................................................
2
Schedule 1--Amendment of the Banking Act 1959
3
Banking Amendment (Controls on Variable Interest Rate Changes) Bill 2010 No. , 2010
1
A Bill for an Act to amend the Banking Act 1959 to
1
place controls on changes in the variable interest
2
rates of ADIs, and for related purposes
3
The Parliament of Australia enacts:
4
1 Short title
5
This Act may be cited as the Banking Amendment (Controls on
6
Variable Interest Rate Changes) Act 2010.
7
2 Commencement
8
This Act commences on the day after this Act receives the Royal
9
Assent.
10
2 Banking Amendment (Controls on Variable Interest Rate Changes) Bill 2010 No. ,
2010
3 Schedule(s)
1
Each Act that is specified in a Schedule to this Act is amended or
2
repealed as set out in the applicable items in the Schedule
3
concerned, and any other item in a Schedule to this Act has effect
4
according to its terms.
5
Amendment of the Banking Act 1959 Schedule 1
Banking Amendment (Controls on Variable Interest Rate Changes) Bill 2010 No. , 2010
3
Schedule 1--Amendment of the Banking Act
1
1959
2
1 At the end of subsection 9(4)
3
Add "or the requirements of section 9AD".
4
2 After section 9
5
Insert:
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9AD Variation of conditions of banks' authorities--variable interest
7
rates on loan and mortgage products
8
(1) APRA must, within 30 days of the commencement of this section,
9
vary the conditions of all existing section 9 authorities to give
10
effect to this section and any new section 9 authority granted after
11
the commencement of this section must include conditions that
12
give effect to this section.
13
(2) A section 9 authority must require an ADI that offers loan or
14
mortgage products, including loans or mortgages offered through
15
or packaged by third parties:
16
(a) in the case of an official interest rate increase--not to
17
increase its variable interest rates for loans and mortgages by
18
more than the percentage increase in the official interest rate;
19
and
20
(b) in the case of an official interest rate decrease--to decrease
21
its variable interest rates for loans and mortgages by not less
22
than the percentage decrease in the official interest rate
23
within 3 business days after that percentage decrease; and
24
(c) not to change its variable interest rates for loans and
25
mortgages except in accordance with paragraph (a) or (b).
26
(3) In this section:
27
official interest rate means the cash rate target announced
28
periodically by the Reserve Bank.
29
variable interest rate means a rate that is advertised by an ADI as
30
its variable interest rate for a loan or mortgage product.
31
Schedule 1 Amendment of the Banking Act 1959
4 Banking Amendment (Controls on Variable Interest Rate Changes) Bill 2010 No. ,
2010
Sunset
1
(4) This section ceases to have effect at the end of the period of 2 years
2
beginning on the day on which this section commenced.
3