Only institutions with at least $ million in Tier 1 capital, and having a settlement account with the RBA, will be able to use the label “bank”. The single regulatory regime will, in principle, allow smaller DTIs to grow into this status more readily than they can now.
Under new policy, mutual organisations will be able to have a banking licence, or to own a bank -- subject, of course, to satisfying prudential qualifications. Previously, it was possible for mutuals to be associated only with non-bank DTIs. It will also be open for banks to be established under non-operating holding company structures.