diff --git a/x/bank/module.go b/x/bank/module.go
index 4427175cc58..38725e71ee9 100644
--- a/x/bank/module.go
+++ b/x/bank/module.go
@@ -25,12 +25,14 @@ import (
 	sdk "github.com/cosmos/cosmos-sdk/types"
 	"github.com/cosmos/cosmos-sdk/types/module"
 	simtypes "github.com/cosmos/cosmos-sdk/types/simulation"
+	authtypes "github.com/cosmos/cosmos-sdk/x/auth/types"
 	"github.com/cosmos/cosmos-sdk/x/bank/client/cli"
 	"github.com/cosmos/cosmos-sdk/x/bank/exported"
 	"github.com/cosmos/cosmos-sdk/x/bank/keeper"
 	v1bank "github.com/cosmos/cosmos-sdk/x/bank/migrations/v1"
 	"github.com/cosmos/cosmos-sdk/x/bank/simulation"
 	"github.com/cosmos/cosmos-sdk/x/bank/types"
+	govtypes "github.com/cosmos/cosmos-sdk/x/gov/types"
 )
 
 // ConsensusVersion defines the current x/bank module consensus version.
@@ -231,7 +233,7 @@ type bankInputs struct {
 	Key    *store.KVStoreKey
 
 	AccountKeeper types.AccountKeeper
-	Authority     types.Authority
+	Authority     types.Authority `optional:"true"`
 
 	// LegacySubspace is used solely for migration of x/params managed parameters
 	LegacySubspace exported.Subspace
@@ -261,12 +263,18 @@ func provideModule(in bankInputs) bankOutputs {
 		}
 	}
 
+	authority := in.Authority
+	if authority == nil || len(authority) == 0 {
+		// default to governance authority if not provided
+		authority = types.Authority(authtypes.NewModuleAddress(govtypes.ModuleName))
+	}
+
 	bankKeeper := keeper.NewBaseKeeper(
 		in.Cdc,
 		in.Key,
 		in.AccountKeeper,
 		blockedAddresses,
-		in.Authority.String(),
+		authority.String(),
 	)
 	m := NewAppModule(in.Cdc, bankKeeper, in.AccountKeeper, in.LegacySubspace)