Source document: https://docs-lawep.s3.us-east-2.amazonaws.com/1697646472316.pdf (Australia)
Dimitr ios Karakatsanakis 3 July 2020 Senate Standing Committees on Economics PO Box 6100 Parliament House Canberra ACT 2600 Dear Committee Secretary and Senators, Inquiry into the Banking Amendment {Deposits) Bill 2020 My name is Dimitrios Karakatsanakis and I am writing to you today to support Senator Roberts' above-mentioned bill which seeks to put into law an assurance that every Australian's bank deposits are secure from being converted or written off in a banking emergency.
Since the passing of the Financial Sector Legislat ion Amendment (Crisis Resolution Powers and Other Measures) Act 2018 there has been concerns that the conversion and write-off provisions introduced into the Banking Act 1959 apply to deposit accounts.

Sim ilar laws/provisions have been passed in other countries and already used in Cyprus in 2013 where deposits were effectively stole n from the citizens of that country to save the Cypriot banks (Bail-in).
These laws are unjust in that they penalise bank depositors for t he often reckless actions of those in charge of the bank and who ultimately caused the bank to fail.

To date our Government has issued several assurances that the amendments realized by the Fina ncia l Sector Legislation Amendment (Crisis Resolution Powers and Other Measures) Act 2018 cannot be used to ba il in deposits but has been reluctant to legislate that assurance.
A simple verbal assu rance does not guarantee the law will not be used in the future to bail in deposits.

Accordingly, the assurances must be in writing w ith protections to deposits legislated.

The Banking Amendment (Deposits) Bill 2020 w ill avoid the uncertainty described above by removing doubt as to the meaning and intent of various provisions in the Banking Act 1959 in relation to bail-in.
The effect of the Banking Amendment (Deposit s) Bill 2020 will be: • • to confirm that t he conversion and write-off provisions of the Banking Act 1959 do not apply to deposit accounts as defined in the bill; and to confirm that nothing in the Banking Act 1959 or any other Commonwea lth legislation extends power to APRA to implement or authorise or direct the implementation of bail-in in respect of deposit accounts as defined in the bil l. Senator Roberts' Bill should be passed to protect Australian Citizen's Deposits by Law.
Given the Government has already issued assurances that t he Bail In of deposit accounts is not possible in o good reason to not support Senator Roberts' Bill.

Yours .sincerely Dimitrios Karakatsanakis Banking Amendment (Deposits) Bill 2020Submission 46