Banks Amendment Act [No. 36 of 2000]
REPUBLIC OF SOUTH AFRICA
VAN DIE REPUBLIEK VAN SUID-AFRIKA
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VOL. L!?d No. 2 1663 KAAPSTAD, 18 OKTOBER 2000
I THE PRESIDENCY
No. 1024. 18 October 2000
It is hereby notified that the President has assented to the following Act which is hereby published for general infornlation:-
No, 36 of 2000: Banks Amendment Act, 2000.
No. 1024. 18 Oktqber 2000
Hierby word beknd gemaak dat die President ~sy goed- keuring geheg het aan die onderstaande Wet wat bier-by ter algemene inligting gepubl iseer word:—
No. 36 v:~n 2000, B~\nk\vysigitlg\ \vet, 2000.”
~ No. 21663 GOVERNMENT Gum 18 OKTOBER 2000
Act No. 36,2000 BANKS AMENDMENT ACT, 2000
GENERAL EXPLANATORY NOTE:
[ 1 Words in bold type in square brackets indicate omissions from existing enactments.
Words underlined with a solid line indicate insertions in existing enactments.
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(English text signed by the President.) (Assented to 14 October 2000.)
ACT To amend the Banks Act, 1990, so as to define or further define certain expressions; to provide for the designation of more than one Deputy Registrar of Banks; to regulate the conducting of a due diligence audit of the financial condition of a bank; to substitute a process of review for a process of appeal against decisions of the Registrar of Banks; to make further provision regarding the use of a name by a bank or by a foreign institution that conducts the business of a bank by means of a branch in the Republic; to prohibit the appointment of an employee of a bank as chairperson of the audit committee of that bank or the appointment of the chairperson of the board of directors of a bank as a member of the audit committee of that bank; to do away with the process of judicial management of a bank that is in financial difficulties and, instead, to regulate the process of curatorship of such a bank more comprehensively; to increase, and to further regulate the making of regulations with regard to, the minimum capital and unimpaired reserve funds required to be maintained by a bank, including a bank of which the business includes or consists solely of trading in financial instruments; to charge the controlling company in a banking group with the responsibility to ensure the maintenance of a certain aggregate of the respective amounts of minimum capital and reserve funds required to be maintained by the respective entities constituting such banking group; to extend the Registrar of Banks’ discretion to exempt a bank from the prohibition on the pledging or encumbering of its liquid assets; to introduce further safeguards in respect of large exposures constituting credit risks to banks and to apply such safeguards also to controlling companies, local branches of foreign banking institutions and foreign branches of local banks; and to create and prescribe penalties for certain further offences; and to provide for incidental matters.
B E IT ENACTED by the Parlitiment of the Republic of South Africa, asfollows:— Amendment of section 1 of Act 94 of 1990, as amended by Government Notice R.1765 of 30 ,July 1991, section 1 of Act 42 of 1992, sections 1 and 25 of Act 9 of 1993, section 1 of Act 26 of 1994 and section 1 of Act 55 of 1996 5
I 1. Section 1 of the Banks Act, 1990 (hereinafter referred to as the principal Act), is
hereby amended- (