Coles' $50m bank licence bid

Retailer's bid to become deposit-taking institution needs regulator's green light.

Wesfarmers (WES) will require a minimum of $50 million in Tier 1 capital for key subsidiary Coles to obtain a banking licence.

The Australian Prudential Regulation Authority guidelines for applicants seeking to become authorised deposit-taking institutions say the regulator will assess the adequacy of start-up capital on a case by case basis depending on the scale, nature and complexity of the planned operations.

The supermarket's plans to pursue an authorised deposit-taking institution licence were reported by The Australian Financial Review.

APRA told Business Spectator it did not comment on any applications for banking licences that might be in progress, saying only that successful applicants are added to a public register on its website.

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