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What's a Restricted ADI?

An “ADI” is an Authorised Deposit-taking Institution.  In order to accept deposits from the public, you need to be authorised to do so by the Australian Prudential Regulation Authority (APRA).  There are a few different types of ADIs – such as banks, credit unions and building societies.  Islamic Bank Australia is a bank, so we’re officially an ADI.

So what’s a “Restricted ADI”?

As we are starting out as a new bank, we’ve been granted a banking ADI authorisation with restrictions. The main purpose of the Restricted ADI period is so that we can build our systems, test them and then offer our products to a small number of real customers.

The main restriction is that we can only accept up to $2 million in deposits during the restricted period.

It’s a bit like the training wheels on a bike – both we, and APRA, want to check that everything is working before we offer our products to the general public.  Once we are happy, and APRA are happy, then we will aim to have the restrictions removed.  This will allow us to offer our products to customers in the general public.

We 100% support APRA and the Restricted ADI approach.  It means that we can be confident that our systems are working well before we open up more broadly for business.

There are other restrictions on Restricted ADIs.  It’s important to note that we do not currently meet the full prudential framework for an unrestricted ADI.  In other words, we have some concessions granted to us whilst we build.  We are working towards the full ADI requirements right now.

You should consider this if you are considering banking with us during the Restricted ADI period (though this is by invitation only as this period is largely for staff, family and friends).

How long will you be a Restricted ADI?

The restricted ADI authorisation period is two years.  Restricted ADIs are expected to “graduate” to being standard ADIs within this two year period.  At Islamic Bank Australia, we are aiming to move to being a standard ADI within this period.

We have been granted a time-limited Restricted ADI banking authorisation. We have until 5 July 2024 to meet the full prudential requirements, or we must surrender our banking authority (we have plans in place to protect customers and return deposits if this were to occur). During this time period we intend to obtain APRA approval so we can publicly launch.

 I have more questions!

You can read more about how banks are licensed on this page on the APRA website:
Licensing guidelines for authorised deposit-taking institutions | APRA

Please reach out to us if you have further questions.  You can use the Send Us a Message form to ask us any questions you have.

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Important regulatory notice

We hold a restricted ADI authorisation granted by the Australian Prudential Regulation Authority (APRA). This authorisation allows us to offer banking services, but is subject to certain restrictions such as a cap on the amount of deposits that we can hold in total. The purpose of the “restricted” status is that we can test our systems and processes before launching as a fully unrestricted bank.

We do not currently meet the full prudential framework and/or requirements, and you should consider this before depositing funds with us. After the completion of our “restricted” phase, we plan to obtain APRA’s approval so that we can publicly launch.

Acknowledgement of Country

We acknowledge the Aboriginal and Torres Strait Islander peoples as the first Australians and Traditional Custodians of the lands where we live, work and bank.  Our corporate head office is in Darug Country. We pay our respects to Elders past, present and emerging.   

Important regulatory notice

We hold a restricted ADI authorisation granted by the Australian Prudential Regulation Authority (APRA). This authorisation allows us to offer banking services, but is subject to certain restrictions such as a cap on the amount of deposits that we can hold in total. The purpose of the “restricted” status is that we can test our systems and processes before launching as a fully unrestricted bank.

We do not currently meet the full prudential framework and/or requirements, and you should consider this before depositing funds with us. After the completion of our “restricted” phase, we plan to obtain APRA’s approval so that we can publicly launch.

Acknowledgement of Country

We acknowledge the Aboriginal and Torres Strait Islander peoples as the first Australians and Traditional Custodians of the lands where we live, work and bank. Our corporate head office is in Darug Country.  We pay our respects to Elders past, present and emerging.   

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Information on this website does not take your personal circumstances, needs or objectives into account. Please consider its appropriateness for you.   We are not yet open for business.  We are a Restricted ADI and do not yet meet the full prudential framework, and you should consider this before banking with us once we are open for business.  Fees and charges may apply, as well as terms and conditions which you should review. Information on this website is subject to change. In order to open a credit product in future, you will need to meet our credit criteria and be approved.  Please review the product disclosure documentation provided at the time of opening your account for detailed information.