Authorised Deposit-Taking Institution
ADIs include banks, building societies and credit unions. All ADIs are subject to the same prudential standards but for a corporation to use word 'bank', 'building society' and 'credit union' in its name must meet certain criteria.
The statutory requirements of an ADI are elucidated by the case of Commissioners of the State Savings Bank of Victoria v Permewan Wright & Co Ltd. This case was seminal in characterising ADI's essential elements as being the collection of money by receiving deposits upon loan, repayable when and as expressly or impliedly agreed upon, and the utilisation of the money by lending it again in such sums as are required. If this is the institution's real and substantial business, and not merely an ancillary or incidental branch of another business, they are deemed to be a bank.
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