It cites difficulties in securing enough capital to sustain the licence
Islamic Bank Australia has announced its decision to relinquish its restricted banking licence to the Australian Prudential Regulation Authority (APRA) at the beginning of this month.
The institution cited difficulties in securing sufficient capital to sustain the licence as the primary reason for the decision.
APRA said it has approved the request from Islamic Bank to revoke its licence to operate as a restricted authorised deposit-taking institution (ADI). The prudential regulator originally granted the licence to Islamic Bank, previously known as IBA Group, in July 2022.
At the time of the licence revocation, Islamic Bank had yet to launch any banking products, had not acquired any customers, and held no deposits.
“While this news may come as a disappointment, we want to assure you that our resolve remains as strong as ever,” Islamic Bank said in a statement. “Our team is diligently exploring various options to navigate this setback and determine the best path forward.
“In the interim, we will be operating under the name Islamic Money. While we may have relinquished our banking licence, our dedication to serving you, our valued community, remains steadfast.”
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