All ADIs are subject to the same prudential standards as banks but for a corporation to use word 'bank', 'building society' and 'credit union' in its name, it must meet certain requirements.
[2] The statutory requirements of an ADI are elucidated in case Commissioners of the State Savings Bank of Victoria v Permewan, Wright & Co Ltd (1914).
[3] The case was seminal in characterising essential elements of a bank as being the collection of money by receiving deposits upon loan, repayable when and as expressly or impliedly agreed upon, and the utilisation of the money by lending it again in such sums as are required.
On 4 May 2018, APRA created a restricted ADI (RADI) framework[4][5] to assist potential new entrants to the banking industry, particularly small firms with limited financial resources, to navigate the licensing process.
The FCS guarantees certain deposits (currently up to $250,000 for each account holder at any ADI incorporated in Australia).