Source document: https://docs-lawep.s3.us-east-2.amazonaws.com/1697646457114.pdf (Australia)
The Secretary Senate Economics Legislation Committee PO Box 6100 CANBERRA ACT 2600 Dear Committee, I am making this submission to urge that the committee recommend parliament pass the Banking Amendment (Deposits) Bill 2020 at the earliest possible opportunity.

The parliament desperately needs to restore community confidence and show they have the community’s best interest at the centre of policy decisions.
Legislating this amendment to the Banking Act 1959 will eliminate the ambiguity that currently exists regarding APRA’s powers to implement, authorise or direct “bail-in” to deposit accounts under the conversion and write-off provisions introduced into the Act with the passing of the Financial Sector Legislation Amendment (Crisis Resolution Powers and Other Measures) Act 2018.
Many constituents and business owners like myself, are not convinced by Treasury’s and APRA’s verbal reassurances that the conversion and write-off (bail-in) provisions, as stated in the Act —will not include deposit accounts.

This Amendment to the Banking Act will write those reassurances into the Act, so that neither Treasury, APRA nor anyone else could mistakenly or intentionally include deposit accounts under conversion and write-off provisions.
The proposed amendments to Subdivision B—Conversion and write-off provisions within the Banking Act 1959 are relatively simple but they will add the clarity necessary to put deposit account holders’ minds at rest with the knowledge that their deposit accounts —savings, trading, retirement accounts — cannot under any circumstances be subjected to bail-in under the resolution powers extended to APRA in 2018.
The amendments as proposed will clearly define “bail-in” in reference to a deposit account and the actual meaning of a deposit account.
By inserting clause (1A) under Application in reference to conversion and write-off, along with adding “not including a deposit account” to paragraph (b) of the definition of conversion and write-off provisions, this Amendment removes the current conflict of interpretation regarding whether or not deposit accounts could be defined as “an instrument” and thus bailed-in under “any other instrument” along with Tier 1 and Tier 2 capital.
Treasury and APRA say they will not: legislating this amendment will put it in black and white so there is no doubt.

Further, by adding 11CAD to Subdivision B of Division 1A of Part ll: No bail-ins of deposit accounts as recommended in the Bill will clearly define — in the law — that APRA does not have any power to bail-in deposit accounts under any circumstances.
Please do the right thing and recommend that parliament legislate this Bill to protect deposit accounts as soon as possible, before there is a crisis in the banks triggering any form of bail-in.

The economy is already in turmoil from the Covid-19 lockdowns, imagine what bailing-in deposit accounts will affect!

Yours sincerely, Ann Lawler Banking Amendment (Deposits) Bill 2020Submission 146 - 10 July 2020 Banking Amendment (Deposits) Bill 2020Submission 146