Australia banking institutions are subject to laws and regulations just like American banks. Banks in Australia must operate according to laws that protect investors, shareholders, and private and corporate clients. When doing Australia commercial banking, it's important to know banks in Australia laws and regulations to guarantee that both the institution and you are operating legally and in the best interest of your business.

When banking in Australia, it's beneficial to compare Australia banks and find one that meets the needs of your business. Familiarize yourself with banks in Australia laws and regulations to protect your business and investments. Make sure you:

1. Familiarize yourself with laws for commercial banking in Australia.

2. Determine which Australia banks meet your business needs.

3. Follow laws and regulations for business banking in Australia.

Action Steps
The best contacts and resources to help you get it done

Learn Australia banking institution laws and regulations

It's important to know Australian banking laws and regulations to protect your business assets and make it easier to do business in a foreign country. Australian banks could have different regulations concerning investments, account information privacy, or deposits and withdrawals, so you need to know what Australia banks laws or restrictions apply to your business.

I recommend: The Australian Prudential Regulation Authority publishes a regular newsletter with statistical information and news about Australian banking laws and regulations. Visit the Australian National Treasury website and download any of their helpful guides to Australian financial services and banking regulations.

Determine what banks in Australia laws and regulations apply to your business

Australia commercial banks will be subject to different laws and regulations depending on the services offered. Laws and regulations govern savings accounts, corporate and private checking, investments, loans, and other financial services. It's important to determine what Australian banking laws you'll be subject to based on the nature of your business.

I recommend: ComLaw provides this guide to laws and regulations for Australian savings banks and accounts to help you understand its legislation. The National Australia Banking Group explains laws and restrictions for investments and securities banking.

Follow all Australia commercial banking laws that apply to your business

You will be subject to all Australian commercial banking laws when you do business in the country, even if your business is American-based. It's important to follow all laws and regulations that apply to your particular company to guarantee that all business is conducted safely and legally. Understand the laws your business is protected by and subject to when you bank in Australia.

I recommend: The Australian Parliamentary Library provides this online guide with resources about Australian banking rules and regulations, which is informative for business bankers. The Reserve Bank of Australia provides several resources about Australia's banking laws, including laws for business owners pertaining to investments and securities.

Australia banking institutions are regulated by the Reserve Bank of Australia or as it is better known, the RBA. The RBA's serves as the banker to the Australian government. Its main functions are to regulate monetary policy, insure low and stable inflation, maintain financial stability, participate in financial markets, mange foreign reserves and issue currency notes.

Whether you choose to use an Australia bank or an international institution for banking in Australia, there are several concepts to consider. For example, you will want to:

1. Learn more about Australia banking institutions;

2. Familiarize yourself with authorized banks in Australia; and

3. Consider using an international bank for commercial banking in Australia.

Action Steps
The best contacts and resources to help you get it done

Understand the regulation policies of Australia banks

Banks of Australia are regulated by the Reserve Bank of Australia and monitored by the Australian Prudential Regulation Authority.

I recommend: The Reserve Bank of Australia provides a great deal of information on how the banking industry in Australia works. The Australian Prudential Regulation Authority oversees all banks and credit unions and enforces the standards set forth.

Find an international bank in Australia

Australia commercial banking authorizes a limited amount of international banks to maintain a representative office in Australia. Currently there are only 19 international Australia banks.

I recommend: There are two banks that I recommend that are based in the United States, that are authorized to be a bank in Australia and that maintain an office there. The Bank of New York provides resources for both institutions and corporations as well as private individuals. Wachovia also maintains an Australia banking institution.

Use a locally owned Australia bank

Australia commercial banking is not much different than banking in other countries. These Australian banking institutions offer both business and personal services. Business services include checking, savings, credit cards, investment and cash management.

I recommend: Commonwealth Bank Group is a well established Australian owned financial institution. Their international solutions include services to assist clients with foreign exchange, international money transfer and foreign currency accounts. With CyberSuite, Commonwealth opens up online banking to depositors. The Macquarie Group not only has offices in Australia, but also has locations located in the United States. They offer service on the personal, business and corporate level through personal investment services and their online Active Banking service.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  Australia requires foreign banks in Australia to restrict their deposit acceptance to wholesale markets.

The Australian banking system is one that is very similar to its counterpart in the United States. Therefore, it's relatively easy for companies from the States to make the transition to banking in Australia. The main difference in the two banking systems is the currency and the terminology for the banking institutes. If you begin to understand these points, your decision to invest capital in the banks of Australia becomes one of opportunity. The terms listed below alone won't make you an Australian banking expert. However, they will provide a solid knowledge base from which to build the necessary industry expertise.

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Reserve Bank of Australia

The Reserve Bank of Australia functions as the bank to the government and regulates monetary policy in the country. Another primary goal for the institution is the financial stability of the Australian banking system.

I recommend: Examine the scope and purpose of the Reserve Bank of Australia for further details.

National Australia Group

The National Australian Group is a global full-service financial organization that provides banking in Australia, America, New Zealand and the United Kingdom.

I recommend: Review the goals and functions of the National Australia Group for more information.

HSBC Group

The HSBC Group is an international banking institute that's not based in Australia but does have a strong presence in the country. Often a truly international bank can be the best financial option, especially if you are unfamiliar with the laws and structure of the country in question.

I recommend: Study the local Australian banking information about the HSBC Group.

Australian dollar

The Australian dollar is the primary currency in the country. It's also important to know the exchange rate of the Australian dollar relative to the U.S. dollar.

I recommend: Assess the summary of the Australian Dollar and currency conversion rate at Convert World.

Authorized Deposit-taking Institution

An Authorized Deposit-taking Institution is a bank that's government inspected and approved to take in deposits from customers. Before you make a deposit in any Australian bank, be sure to determine if they are an Authorized Deposit-taking Institution.

I recommend: Learn more about Authorized Deposit taking Institutions at the Law Society of New South Wales.

Australian Prudential Regulation Authority

The Australian Prudential Regulation Authority is the entity responsible for the regulation of individual banks in the country. The Australian Prudential Regulation Authority regulates all banks, credit unions, insurance companies, building societies and other financial entities within Australia.

I recommend: Examine the introduction to the Australian Prudential Regulation Authority for more information.

Working with banks in Australia is slightly different than working with banks in other countries because there is not much of a foreign banking presence in Australia. There are four major Australia banking institutions that are the foundation of Australia's bank system.

Opening a check account with one of the Australia banks can be done online from the States before arriving in Australia. If you are in Australia, you can open a banking account within the first six weeks using only your passport for ID. You will need much more identification (referred to as the "100 point system") if you open an account after six weeks.

1. All major credit cards are accepted at banks in Australia.

2. The savings and checking accounts of Australia banking institutions are different than those in the US. The savings accounts provide less interest.

3. Most transactions are done online; checks are primarily used by businesses.

Action Steps
The best contacts and resources to help you get it done

Find out more about Australia commercial banking

A large number of locally owned and international merchant banks compete with the major banks in corporate finance. If you are thinking of banking in Australia, knowing the needs of your company will give you the anchor you need in choosing a bank for your company.

I recommend: Business in Australia is a government website that provides information on doing business in Australia and what its banks do. Business Bank Accounts suggests you understand your business needs before choosing a bank.

Take a look at banks in Australia that serve business clients

Australia commercial banks, both small and large, want to do business. See what some of the banks offer in the way of business.

I recommend: HSBC provides small business services with a cash management option--it's one of the larger Australia commercial banks and depending on your business, this might be the one you need. Commonwealth Bank provides online business accounting, loans and risk analysis.

Use Australia commercial banking to provide you with other services

Many writers have commented that it's important to compare Australia banks because not only are there different fees among banks but also different services.

I recommend: BankWest puts more into its business services than some other banks--it will liaise with you and your customers, handle paperwork and boasts competitive pricing for its services. Wide Bay offers business banking in Australia Wide Bay, including a high-rate money management account that allows access to your money.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  Working with banks in Australia requires talking to a lot of banks. Commentators on the subject state that fees and services differ a lot from bank to bank. It's important you get only the services you need because fees are involved in most transactions and you don't want to pay fees for things you don't need.