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Can non-banks use the word ‘bank’? APRA gives updated guidance on s 66

APRA released an update of its guidance on the use of the term ‘bank’ on 14 August 2015.

Under sections 66 and 66A of the Banking Act a person carrying on a financial business cannot use the term ‘bank’ or any variation of ‘bank’ without the approval of APRA. This is designed to prevent customers being misled into assuming non-bank businesses are regulated by APRA.

Industry has long been confused about whether non-banks can refer to themselves as ‘non-bank lenders’, and use words such as ‘internet banking’. More…