Legal and Regulatory Frameworks: Bank of China in Australia Report

This report provides a comprehensive analysis of the Bank of China's operations within the Australian financial landscape. It begins with an executive summary and table of contents, followed by an introduction outlining the bank's history and services. The report then delves into the Australian legislative and regulatory frameworks, examining the roles and impacts of the Australian Prudential Regulation Authority (APRA), the Australian Securities and Investment Commission (ASIC), and the Reserve Bank of Australia (RBA) on the Bank of China. Furthermore, the report explores the treaties and agreements between China and Australia, specifically the China-Australia Free Trade Agreement, and their effects on the bank's products and services. The discussion encompasses the elimination of trade barriers, improved investment, and the provision of better financial and transport services. The report also discusses financial agreements between the two nations and their influence on increased trade and investment. The conclusion summarizes the key findings and emphasizes the importance of these agreements in fostering a strong economic relationship between China and Australia, ultimately impacting the global economy. The report references relevant sources to support its claims.

Running head: PRODUCT DISRIBUTION AND REVENUE MANAGEMENT 1
PRODUCT DISTRIBUTION AND REVENUE MANAGEMENT
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Executive Summary
Several multinational industries operate in Australia. Bank of China is one of the famous
multinational company which operates under the industry of finance in Australia. Therefore, this
report aims to evaluate this company in details. Also, the discussion will examine various
legislative, regulatory frameworks and their impacts on the Bank of China. The research further
discusses agreements and treaties between Australia and China and their impact on product and
services provided by the Bank of China.

Table of Contents
Table of Contents
Introduction.................................................................................................................................................4
Australia legislative regulatory frameworks................................................................................................4
Findings...................................................................................................................................................4
Discussions..............................................................................................................................................5
Australian Prudential Regulation Authority.........................................................................................5
Australian Securities and Investment Commission..............................................................................5
Reserve Bank of Australia (RBA) regulatory framework......................................................................6
Treaties and Agreements between China and Australia..............................................................................7
China-Australia Free Trade Agreements..................................................................................................7
Impacts of free trade between Australia and China....................................................................................8
Elimination of trade barriers....................................................................................................................8
Improved Investment in Australia...........................................................................................................8
Better Transport services.........................................................................................................................9
Financial agreements between Australia and China................................................................................9
Impacts of International Financial Agreements in Australia......................................................................10
Increased Trade and Investment...........................................................................................................10
Conclusion.................................................................................................................................................10
References.................................................................................................................................................12

Introduction
Recent findings show that the Bank of China came into existence in the year 1942.
However, it is based in Australia where it becomes the firsts to operate. Its main objective is to
establish an excellent economic relationship between Australia and China. Bank of China has
decades of experience in related financial matters. Thus, it has established global networks.
Moreover, it has developed fast and efficient methods of supplying financial products to its
potential customers. Recent Statistics shows that it has a company size of 201 to 500 staffs in
Australia (Dollar, 2016, pg.192).
However global statistics show that the company has over 4 billion employees all around the
globe. Its headquarters are in Sydney Australia. The company offers a wide range of financial
services products such as trade finance, Corporate financing, Foreign currency Remittance
services, etc. (Fan, Zhu, &Nyland, 2012, pg. 18)
. Additionally, they advance loans such as personal loan, home loan and commercial
loans business enterprises, companies and individuals.
Australia legislative regulatory frameworks.
Findings
In early 1998 Australia made legislative, regulatory frameworks which responded to the
financial system needs that were composed of 3 major agencies.
1. Australian Prudential Regulation Authority in charge of provident supervisions.
2. Australian Security and Investment Commission in charge of consumer protection and
marketing in financial services.

3. The Reserve Bank of Australia in charge of financial activities, monetary policies and
controlling payment system.
Discussions
Australian Prudential Regulation Authority
Therefore, the above legislative, regulatory frameworks have several impacts in Bank of
China in Australia. Thus, the Australian Prudential Regulation Authority impacts various
deposits taking institution such as the Bank of China. Firstly, APRA creates developed sensible
policies that enhance the Bank of China to gain financial safety, efficiency in the delivery of
services and a free competitive environment. Additionally, the Bank of China is entitled to a
single licensing rule that makes its regulation by APRA simple. However, Banking act of 1959
protects the depositors, for instance, the Bank of China (Authority, 2013).
The Banking Act of 1959 enabled Bank of China to claim assets of authorized
depositors’ taking institution. Therefore, under the depositors’ act, depositors such as Bank of
China should hold assets which would be equal to its liabilities in Australia. However, there is no
guarantee of the funds that the bank of China may hold. Thus, in the case of Bank of China, the
Australian Prudential Regulation Authority may intervene to solve issues of economic weakness,
retirement funds, and general insurance. Thus, the issues may lead to unfavorable effects on the
interests of policyholders and the overall members of the company.
Australian Securities and Investment Commission
The agency is responsible for governing a wide range of financial activities in Australia.
Some of the activities include governance and enforcement of legislative requirements that relate
to financial sectors, financial products, financial markets, insurance, investment, and deposit-

taking activities. Furthermore, it prevents consumers from unfair practices and manipulation and
assists them to make better financial decisions.
However, concerning the Bank of China, the Australian Securities and Investment
Commission create policies and regulations that monitors and administers the activities of this
Bank. Also, ASIC ensures, honesty, fairness, and integrity in the Bank of China company affairs;
thus, it solves matters of security by ensuring that information is disclosed accurately and on
time. Additionally, ASIC monitors financial activities of the Bank of China by giving licenses
and the provision of meaningful information (Mees & Smith, 2019).
Furthermore, the Australian Securities and investment commission plays a vital role in
consumer protection; Also, it implements the requirements under the Financial Services Reform
Act 2001 (First Act). Therefore, the act provides the governing administration for consumer
protection and enhancement of market integrity. The framework enables the Bank of China to
conduct financial services most efficiently. Also, it enables the Bank of China to quickly, treat
different financial products most appropriately.
Recent Research shows that licensing administration board in Australia governs various
routes for accessing licenses for future exchanges, settlements, and securities. Therefore, those in
charge of licenses have one role in market operations. Thus, ASIC is mandated to advise the
agency set by the Bank of China on licensing matters. Consequently, the Bank of China would
have a little time in to deal with primary financial operations.
Reserve Bank of Australia (RBA) regulatory framework
Thus, it is an essential regulatory framework in Australia that is in charge of monetary
policy that enhances financial operations stability. Subsequently, RBA has no mandate to protect

the interest security of Bank of China; instead, it is obligated to deal with the issue of financial
instability that can have an impact on the economy and lower the morale of investors. Therefore,
in case of such threat, the Reserve Bank of Australia gets in and acts as the lender of last resort to
the Bank of China, in case of emergencies.
The Reserve Bank of Australia has strong administrative powers to enhance safety, efficiency
and competition in Australia; however, it has the right to control the payment system under the
authority of its payment board. For instance, if it finds that the particular payment system
requires improvements, then it can give orders concerning the set standards that the system
should have. Thus, the RBA may impose these regulatory powers to the Bank of China and
affects its financial decisions (Kirchner, 2018).
.
Treaties and Agreements between China and Australia
China-Australia Free Trade Agreements
Findings show that China developed a free trade agreement with Australia. The
agreements main aim was to enhance the economic growth of both countries. Furthermore, the
agreement was aimed to remove trade barriers such as tariffs, in sectors of finance, agriculture,
and manufacturing. Additionally, it strengthened these sectors in both countries. Thus, China and
Australia had a competitive advantage over other countries around the globe. Finally, the Bank
of China strengthened the relationship between China and Australia through efficiency financial
operations (Hannan, 2018, pg.64).
Findings show that the Bank of China had already established a secure link between the
two countries; therefore, the free trade main aim was to strengthen these relationships. Recent

Statistics shows that Australia exports goods worth more than $100 billion every year in China.
Thus, this is more than the amount Australia exports in other regions such as Germany, South
Korea, United Kingdom, France, Canada, and Asia.
Impacts of free trade between Australia and China
Elimination of trade barriers
It is evident that Removing trade barriers such as Tariffs made goods and services more
competitive in the Australian economy. Thus, financial sectors such as the bank of China
becomes more productive, through interest on loans and demand deposits. Also, removing trade
tariffs in s china benefited Australian consumers and business enterprises. Therefore, there was a
massive increase in trading activities and investment.
Better financial services
Findings show that the agreement between Australia and China enhanced better financial
services in Australia. These made the business council in Australia to appreciate the government
for having treaty agreements based on financial services with China. Thus, transparent
regulations and rules were intended to strengthen the relationship between Bank of China and
Australia financial providers. Moreover, better financial services gave Australian investors broad
certainty before making their meaningful investment decisions.
Improved Investment in Australia
Research shows that the agreement between China and Australia encouraged massive
investment in Australia. However, Private Chinese Investment enterprises were mandated by the
Austrian Foreign Investment Review Board to carry out their business in Australia; these made
the Chinese investors contribute a lot to rise in economic growth in that region.

Better Transport services
China offered Australia best services ever, more than other free trade agreement partners.
For instance, the construction and maintenance of various transport services such as air transport
services, road services, and railway services. Therefore, with the help of China, Australia can get
the best transport services, which promotes trade by enhancing the safe delivery of goods and
services.
Meaningful legal services
The treaty commitments between China and Australia enhanced, commercial interactions
between various law firms. The free trade agreements gave Australian law firms access to
international legal services without any limitations. Thus, they can be able to make decisions and
solve various international legal matters related to financial services.
Financial agreements between Australia and China
Research shows that international banking and finance revolves around two significant
aspects: international financial transactions and international establishment of premises. Thus,
there is a need for international agreements which will make it easy to conduct both international
financial and banking services (ntkiewicz & Whalley, 2011, pg. 101).
. Therefore, the only way to achieve international agreements on banking and finance is through
discussion on matters concerning the agreement between the nations. Moreover, the agreements
are enforceable through various legislation of the domestic nation. Thus, the financial
agreements between Australia and China have profoundly impacted the economy of Australia.
Findings show that the Bank of China made massive contributions regarding financial
agreements.

Recent findings show that international agreements between China and Australia have
contributed to massive developments in those countries. However, it is not easy to achieve
international agreements; thus, the process demands a lot of patience and discussion between the
private and public sectors involved. Consequently, it was successful in Australia, through the
Bank of China. Thus, international financial agreements have contributed to the massive growth
of various sectors in Australia.
Impacts of International Financial Agreements in Australia
Increased Trade and Investment
Scholars argue that China is one of the leading trading partners in Australia. Recent statistics
show that Australia exports to China valued at $93 billion in 2016. Thus, movement of Australia
is working on various initiatives to strengthen the relationship (O’Neill, Sohal & Teng, 2016,
pg.385).
Moreover, the agreements have broadly enhanced investment and trading activities in Australia.
However, after launching the Bank of China in the year 2015, the Reserve Bank of Australia and
the Bank of China renewed its agreement. Consequently, people can exchange currencies
between the two banks. Thus, trade between the two countries promotes financial investments
and stronger financial corporation between them.
Conclusion
This report has discussed in details the Bank of china and its financial operations.
Moreover, it expounds a detailed discussion of the impacts that this bank has made in Australia.
Besides, the discussion examines various regulatory frameworks and their impact on financial
operations. Additionally, the report has discussed two types of agreements that have a massive

impact on the product and services of the Bank of China. However, the dominant role of these
agreements is to strengthen financial and economic relationship between China and Australia.
The strong economic relationship between them has made them dominate the economy all
around the globe. Also, the economic relationship has encouraged free trade relations between
them.

References
Antkiewicz, A., & Whalley, J. (2011). China's new regional trade agreements. In China's
Integration Into The World Economy (pp. 99-121).
Authority, A. P. R. (2013). Australian Prudential Regulation Authority.
Ballantyne, A., Hambur, J., Roberts, I., & Wright, M. (2014). 11. Financial Reform in Australia
and China. DEEPENING REFORM, 251.
Dollar, D. (2016). China as a global investor. China’s New Sources of Economic Growth, 1, 197-214.
Fan, D., Zhu, C. J., & Nyland, C. (2012). Factors affecting global integration of Chinese
multinationals in Australia: A qualitative analysis. International Business
Review, 21(1), 13-26.
Hannan, K. (2018). Free trade agreements: How Australian wine benefits from FTAs. Wine & Viticulture
Journal, 33(3), 64.
Kirchner, S. (2018). Money too tight to mention: The Reserve Bank of Australia’s financial stability
mandate and low inflation. Economic Analysis and Policy, 60, 141-149.
Mees, B., & Smith, S. A. (2019). Corporate governance reform in Australia: a new institutional
approach. British Journal of Management, 30(1), 75-89.
O’Neill, P., Sohal, A., & Teng, C. W. (2016). Quality management approaches and their impact on firms׳
financial performance–An Australian study. International Journal of Production
Economics, 171, 381-393.