Bank state branch explained

A Bank State Branch (often referred to as "BSB") is the name used in Australia for a bank code, which is a branch identifier. The BSB is normally used in association with the account number system used by each financial institution. The structure of the BSB + account number does not permit for account numbers to be transferable between financial institutions. While similar in structure, the New Zealand and Australian systems are only used in domestic transactions and are incompatible with each other. For international transfers, a SWIFT code is used in addition to the BSB and account number.

The BSB identifier consists of six numerals, the first two or three of which is a bank identifier. Many banks only have one BSB for all branches and accounts.[1] [2] The BSB is used for processing of paper and electronic transactions, but not in payment card numbering.

In Australia, the Australian Payments Network (AusPayNet) is now the regulatory body of cheque clearances and of the BSB codes in Australia. AusPayNet assigns the bank code to a financial institution and the financial institution allocates the other digits to its branches, in line with guidelines set by AusPayNet. Some financial institutions have more than one bank identifier, arising from mergers of financial institutions or consolidating by banks of their trading and savings banks operations. As of March 2012, almost 14,300 unique BSB code values were in use.

Usage

In Australia, BSB codes are allocated by the Australian Payments Network (AusPayNet). BSB codes are used in a number of payment systems in Australia. To access the various clearance systems a financial institution must have its own BSB or use an intermediary with a BSB.

Paper transactions

Cheques are the least used form of non-cash payment in Australia,[3] but the most by value. Financial institutions are required to include BSB and bank account numbers on cheques, at the bottom of the cheque in MICR form, which identify the specific bank account number to be debited. BSB codes are also used on pre-printed deposit and other vouchers. Paper transactions are processed under the Australian Paper Clearing System (APCS) (also known as CS1) drawn up by AusPayNet. Account instructions which do not have a BSB code are processed manually.

Electronic transactions

Electronic fund transfers (EFT) are the most common method of non-cash payment in Australia. EFT transactions between bank accounts use the Direct Entry system or the New Payments Platform (NPP). For transfers using the Direct Entry system, BSB and bank account numbers must be given for the accounts to be debited as well as for the account to which funds are to be transferred. For transfers using the NPP, BSB and account numbers or a payee's PayID must be given for the payee account to be credited. Electronic direct entry transactions are processed under the Bulk Electronic Clearing System (BECS) (also known as CS2) drawn up by AusPayNet. NPP transactions are processed under the NPP Regulations administered by NPP Australia Limited. The requirement for two-sided BSBs is eased in transactions involving payment cards, such as credit cards or debit cards, and in BPAY transactions, in which one side of the transfer is an account which includes the BSB electronically linked to the card and BPAY biller.

International transactions

For incoming international transfers, SWIFT codes are used in addition to the Basic Bank Account Number (BBAN), which comprises a BSB and bank account number. There is no public discussion of the adoption of IBAN identifiers for incoming international transactions. Any process towards IBAN would involve considerable changes to bank software and computer systems, and the requirement for financial institutions to adopt defined length account numbers. Outgoing international transfers must use either the SWIFT or IBAN system in use in the destination country, which would incorporate that country's format for BBAN.

Format

The BSB is a six-digit code, usually presented as nnn-nnn. Originally, the format of the BSB code was for the first two digits to indicate the "bank" and the other four digits specified the "branch" of that financial institution, the first digit of which was the state code indicating the state where the branch was located. Some banks may use only one BSB for all branches.[1] [2]

For example, the Australian BSB code "033088" breaks down to:

Some of the larger banks had two bank codes, with separate codes for their trading (cheque) and savings bank entities. The first digit of the bank code was either 0 (for trading bank accounts) or 1 (for savings bank accounts), with a common second digit. For example, 03 was for Westpac's trading accounts, while 73 was for Westpac's savings accounts. Some banks continue to use two bank codes, which today are of only historic and legacy significance.

History

Following the introduction in the United Kingdom in the 1960s of a "sort code", a comparable BSB identifier system was introduced in Australia in the early 1970s to streamline cheque clearance through the banking system in Australia. At the time the clearance systems were open only to financial institutions registered as banks. The BSB and account number was printed on cheques in MICR format to streamline the process of data capture as well as for mechanical sorting and bundling of the physical cheques for forwarding to the payer bank branch for final cheque clearance. Other financial institutions had to use banks as intermediaries to access the clearance of their "payment orders", which were the non-banking equivalents of cheques.

Since then, the use of BSBs has been extended to electronic transactions, but not in payment card numbering.

With the restructuring of the financial system in Australia, other financial institutions were given direct access to the clearing systems, and the structure of the BSB has had to be modified. While banks generally still follow the traditional state branch structure, building societies and credit unions often do not. This is because many of these institutions use an intermediary; for example, BSBs such as 80xxxx are administered by Cuscal, 579xxx are administered by Australian Settlements Limited, whereas 704xxx is administered by Indue. In these situations, the building society or credit union is identified by the 'state' and 'branch' components of the BSB whereas the 'bank' refers to the intermediary. Depending on the intermediary used, building societies (both current and former) BSBs generally start with 63xxxx and most credit unions BSBs will use either 704xxx or 80xxxx. The state code structure is not always used in these situations. For example, Bendigo Bank started as a building society in Victoria but now uses a single BSB nationally (633-000) while the Queensland-based Heritage Bank, also a former building society, uses 638xxx. Suncorp Bank uses 484-799 for all deposit accounts regardless of which branch or state the account was opened in.

Furthermore, recent changes in Australia's financial system have allowed larger building societies and credit unions to establish their own BSBs, even if they are using an intermediary. Having their own BSB allows a financial institution to create new products and offer additional services.

List of Australian bank codes

NumberCodeBank Name
01ANZANZ
03 or 73WBCWestpac
06 or 76CBACommonwealth Bank
08 or 78NABNational Australia Bank
09RBAReserve Bank of Australia
10BSABankSA
11 or 33STG or SGPSt George Bank
12 or 639BQL or HOMBank of Queensland
639 refers to Home Building Society which has since been acquired by Bank of Queensland
14PIBRabobank
15T&CTown & Country Bank
acquired by ANZ
18MBLMacquarie Bank
19BOM
21CMBJPMorgan Chase Bank
22BNPBNP Paribas
23BALBank of America
24CTICitibank Australia
255BPSBNP Paribas
259ALXAlex Bank
26BTABT Financial Group
28NMBNational Mutual Royal Bank, joint venture between Royal Bank of Canada & National Mutual Insurance (sold to ANZ)
29BOTBank of Tokyo
30BWABankwest
31BAUBank Australia
325BYBBeyond Bank Australia
34 or 985HBA or HSBHSBC Bank Australia
35 or 980BOC or BCABank of China
40CSTCommonwealth Bank, formerly Colonial State Bank, which was previously State Bank of New South Wales
41DBADeutsche Bank
42 or 52TBTColonial Trust Bank, formerly Trust Bank of Tasmania, now part of Commonwealth Bank
45OCBOCBC Bank
46ADVAdvance Bank (branches in the ACT)
47CBLChallenge Bank, which has since been acquired by Westpac
48 or 664MET or SUNSuncorp Bank
48 was used by Metway Bank prior to its merger with Suncorp Building Society
510CANCitibank Australia
512CFCCommunity First Credit Union
514QTMRACQ Bank, previously QT Mutual Bank
517VOLVolt Bank commenced operations in Australia 2018
527TBTTrust Bank of Tasmania, now Commonwealth Bank
533BCCBananacoast Community Credit Union
55BMLBank of Melbourne (1989), formerly RESI-Statewide Building Society, now part of the Westpac Group
57ASLAustralian Settlements, an intermediary used by many organisations including Building Societies
60SBVState Bank of Victoria, prior to merger with Commonwealth Bank
610ADLAdelaide Bank
611SELAustralian Mutual Bank, previously Sydney Credit Union (611100) and Endeavour Mutual Bank (611000)
630ABSABS Building Society
632BAEB&E now trading as Bank of us
633BBLBendigo & Adelaide Bank, includes UP Bank (633-123) and Rural Bank (633-111)
634UFSUniting Financial Services
636HAYHay Limited
637GBSGreater Bank
638 or 880HBSHeritage Bank
639HOMHome Building Society (WA) acquired by Bank of Queensland
640HUMHume Bank
641 or 647IMB or AUBIMB Bank
642ADCAustralian Military Bank, previously Australian Defence Credit Union
645 or 656MPB or BAYWide Bay Australia, now Auswide Bank
646MMBMaitland Mutual Building Society
650NEWNewcastle Permanent Building Society
653PPBPioneer Permanent Building Society
since acquired by Bank of Queensland
654ECUECU Australia
655ROKThe Rock Building Society, now part of MyState Bank
656BAYAuswide Bank, previously Wide Bay Building Society
659GCBG&C Mutual Bank, previously SGE Credit Union
670YOUUBank commenced as 86400 Bank in 2018 then purchased by NAB and rebranded UBank
671HPCHeritage People's Choice following the merger of Heritage Bank & People's Choice Credit Union
676GTWGateway Bank previously CBOA Credit Union
70CUSIndue, an intermediary used by many organisations (particularly credit unions)
704-191CUSBankFirst previously Victoria Teachers Credit Union & Victoria Teachers Mutual Bank
704-230CUSBankVic previously Police Association Credit Co Operative or Police Credit & Police Credit Co-Op
704-865CUSQudos Bank trading name of Qudos Mutual Ltd, previously Qantas Credit Union & Qantas Staff Credit Union
721HCCHoliday Coast Credit Union
722SNXSouthern Cross Credit Union
723HICHeritage Isle Credit Union
728SCUSummerland Credit Union (1 July 2011 728-728)
775XINXinja ceased trading late 2020
777PNB
80CRUCuscal, an intermediary used by many organisations (particularly credit unions)
805-050CRUPeople's Choice Credit Union trading name of Australian Central Credit Union
812TMBTeachers Mutual Bank
813CAPThe Capricornian
814CUAGreat Southern Bank
815PCUPolice Bank
817WCUWarwick Credit Union
818COMBank of Communications
819IBK
833DBLDefence Bank, previously 803-205 Defence Force Credit Union
882MMPUnity Bank previously Maritime, Mining & Power Credit Union
888CCBChina Construction Bank Corporation
889DBSDBS_Bank Australia Branch
902APOAustralia Post
911SMBSumitomo Mitsui Banking Corporation
913SSBState Street Bank & Trust Company
915FNCFNC Agency - Bank One, NA
917ARAArab Bank Australia
918MCBMizuho Corporate Bank
922UOBUnited Overseas Bank
923 or 936ING or GNIING Bank
931ICBMega International Commercial Bank Co
932NECNew England Credit Union (trading as Regional Australia Bank)
939AMPAMP Bank
941BCYDelphi Bank
formerly Bank of Cyprus Australia, since acquired by Bendigo Bank, brand retired by BBL in 2022 all account now under BSB 633
942LBABank of Sydney previously known as Bank of Beirut and Beirut Hellenic Bank
943TBBTaiwan Business Bank
944MEBME Bank brand sold to BOQ
946UBSUBS
951INVInvestec now trading as BOQ Specialist
952RBSRoyal Bank of Scotland
969MSLTyro Payments
980BCABank of China
985HSBHSBC Bank Australia
[4]

State codes

Historically, the major banks structured their BSB codes by states. This is largely historic and have only limited significance in electronic banking. For those that still maintain state codes, the state code is the first of the four digit branch field, as follows:

See also

External links

Notes and References

  1. Web site: BSB Number: Your Complete Guide. 2021-04-24. bank.codes.
  2. Web site: What's a BSB Number & How is it Used?. 2021-04-24. statrys.com. en.
  3. Web site: AusPayNet. Towards The Digital Economy - Milestones Report - April 2013. 29 September 2013.
  4. Web site: Search BSBs. bsb.auspaynet.com.au.