Source document: https://docs-lawep.s3.us-east-2.amazonaws.com/1697646602013.pdf (Australia)
Committee Secretary Economics Legislation Committee Department of the Senate PO Box 6100 Parliament House CANBERRA ACT 2600 AUSTRALIA 10 July 2020 Submission: Banking Amendment (Deposits) Bill 2020 I am making this submission to voice my strong support of the Banking Amendment (Deposits) Bill 2020.

The current legislation is unclear and requires an amendment to remove ambiguity and uncertainty for bank depositors such as myself.
This legislation would amend the Banking Act 1959 and eliminate any risk to my savings being subject to bail- in in the event of a financial crisis in Australia.

I want the Senate Economics Legislation Committee to: • • Amend the banking act 1959 to provide that the conversion and write-off provisions do not extend to the bail-in of deposit accounts.
Provide that nothing in the act or other commonwealth legislation gives the Australian Prudential Regulation Authority the power to implement, authorise or direct the implementation of bail-in of deposit accounts.

• Give protection to retail deposits to give confidence to the banking industry.
If the amendment is not recommended or passed, I want the Senate Economics Legislation Committee to: • Recommend that the banking act 1959 be amended so as to be clear, transparent and unambiguous that bank-deposits can be bailed in to provide clarity to depositors.

I am making this submission as I have been concerned about the risks to my hard-earned savings associated with deposit bail-in for some time.
After writing to my Member of Parliament, Peter Khalil on the issue in November 2018, he assured me that bank deposits could not be bailed-in, documented in an email he sent to me on the 15th of January 2019, in which he stated: “The conversion powers in s 11CAA of the Bill are note intended to cover bank deposits.

This issue was canvassed at great length in a Senate inquiry on the Bill.

“ “Both the Reserve Bank of Australia and the Treasury confirmed that this power would not cover bank deposits.
You can find information about the Senate inquiry here: https://www.aph.gov.au/Parliamentary Business/Committees/Senate/Economics/CrisisRe solutionPowers/Report” “On page 19 of the report from the Senate committee, it was noted that: Treasury confirmed that because deposits are not classified as capital instruments, and do not include terms that allow for their conversion or write-off, they cannot be 'bailed-in'.” If, as the Reserve Bank of Australia and the Treasury have confirmed on the public record, that bank deposits where not meant to be covered by the conversion powers in s 11CAA of the Bill, it seems an appropriate and relatively straight forward measure to pass this this amendment.
While I strongly support this bill and do not believe that deposits should be bailed in, if this is in fact the intention of the government, I ask that this be made explicit.

Other countries have transparent deposit bail-in legislation, so that citizens are aware of and can assess the risks associated with banking with various ADIs.
It is essential that the government either amend the bill through the introduction of a clause which states that bank deposits either are or are not an instrument subject to bail in, removing all ambiguity.

Your sincerely, Michelle Besley Banking Amendment (Deposits) Bill 2020Submission 151