APRA grants banking licence to foreign lender

The Australian Prudential Regulation Authority (APRA) has granted Societe Generale a licence to operate as a foreign authorised deposit-taking institution (ADI) under the Banking Act 1959.

The French lender operates across a range of global networks, including the Asia Pacific, where it has been active since 1867.  

Societe Generale opened its first Australian office in 1981, located in Sydney, where it has provided products and services in the areas of financial advisory and global markets.

The foreign lender’s new ADI licence will enable it to conduct banking business in Australia, with the exception of receiving retail deposits – as per the conditions of a foreign ADI licence.

Societe Generale is the second foreign lender to be authorised by APRA in 2019, after the regulator granted a banking licence to China Everbright Bank in January.

Several Australia-based challenger banks have also recently been authorised by the regulator, with SME lender Judo Bank receiving a full ADI licence last month.  

Judo Bank is the latest neobank to receive a banking licence, with Volt Bank receiving a licence in May 2018, and Xinja Bank authorised to operate as a restricted ADI in December 2018.

86 400 has also applied for an ADI licence, which it expects to receive in the coming months.

[Related: APRA authorises new bank]