27Limitation of powers of Commonwealth Bank under this Part

27 Limitation of powers of Commonwealth Bank under this Part

(1) In this section:

prescribed bank means:

(a) the Bank of China;
(b) the Bank of New Zealand;
(c) The Brisbane Permanent Building and Banking Company Limited; and
(d) the Comptoir National d’Escompte de Paris.

statutory reserve deposit ratio, in relation to a bank, means the percentage specified in a determination under this Part that will, by virtue of the next succeeding section, be the statutory reserve deposit ratio applicable to the bank on the commencing date for the purposes of Division 3 of Part II of the Banking Act 1959.

(2) The Commonwealth Bank shall exercise its powers under this Part in such a manner: (a) that, if a statutory reserve deposit ratio applies to a trading bank other than a prescribed bank: (i) a statutory reserve deposit ratio equal to that first‑mentioned statutory reserve deposit ratio also applies to each other trading bank other than a prescribed bank; and (ii) a statutory reserve deposit ratio greater than that first‑mentioned statutory reserve deposit ratio does not apply to a prescribed bank; and (b) that, if a statutory reserve deposit ratio does not apply to a trading bank other than a prescribed bank, a statutory reserve deposit ratio does not apply to a prescribed bank.