South African Reserve Bank Amendment Act 10 of 1993
REPUBLIC OF SOUTH AFRICA
GOVERNMENT GAZETTE
STAATSKOERANT
VAN DIE REPUBLIEK VAN SUID-AFRIKA
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CAPE TOWN, 10 MARCH 1993
KAAPSTAD, 10 MAART 1993 No. 14627
STATE PRESIDENT'S OFFICE KANTOOR VAN DIE STAATSPRESIDENT
No. 370. 10 March 1993 No. 370. 10 Maart 1993
It is hereby notified that the State President has assented to the following Act which is hereby published for general information:-
No. 10 of 1993: South African Reserve Bank Amendment Act, 1993 ..
Hierby word beke~d gemaak dat die Staatspresident sy goedkeuring geheg bet aan die onderstaande Wet wat hierby ter algemene inligting gepubliseer :-vord:-
No. 10 van 1993: Wysigirigswet op die Suid-Afrikaanse Re- . · serwebank, 1993.
Please note that most Acts are published in English and another South African official language. Currently we only have capacity to publish the English versions. This means that this document will only contain even numbered pages as the other language is printed on uneven numbered pages.
2 No. 14627 GOVERNMENT GAZETTE, 10 MARCH 1993
Act No.lO, 1993 SOUTH AFRICAN RESERVE BANK AMENDMENT ACT, 1993 ' .
GENERAL EXPLANATORY NOTE:
[ ] Words in bolcUype in square bra~kets indicate· omissions from existing enactments.
·· ' . . Words underlined with a solid line indicate insertions· in existing enactments ..
ACT To amend the South African· Reserve Bank Act, 1989, so-as to define a certain expression and to delete certain definitions; and to provide for the maintenance by banks of minimum reserve balances in accounts with the South African Reserve Bank; and to provide for matters connected therewith.
(Afrikaans text signed by the State President.)- (Assented to 26 February 1993.)
·BE IT ENACfE_D by the State President and the Parliament of the Republic of South Afnca, as follows:- · · ·
Amendment of section 1 of Act 90 of 1989
1. Section 1 of the South African Reserve Bank Act, 1989 (hereinafter referred to as the principal Act), is hereby amended- .· ' · · · · . · · 5
(a) by the insertion, after the definition of "Bank", of the following definition: . . " 'bank' means a bank as defined in section 1 1 of the Banks Act 1990 (Act No. 94 of 1990), and, for the purposes of section lOA, includes a permanent mutual building society referred to in section 4(2)(a) of the 10 Mutual Building Societies Act, 1965 (Act No. 24 of 1965);";
(b) by the deletion of the definition of "banking institution"; (c) by the deletion of the definition of "building society"; and (d) by the insertion, after the definition of "mutual building society", of the
following definition: 15 " 'prescribed' means prescribed by regulation;".
Amendment of section 4 of Act 90 of 1989
2. Section 4 of the principal Act is hereby amended~ (a) . by the substitution for paragraph (b) of subsection (2) of the following
paragraph: 20 "(b) No person who is a director, officer or employee of a
[banking institution] bank or mutual building society [or building . . society] shall be appointed as or remain· Governor or Deputy
Governor."; and .· · · ' · · · (b) · by the substitution for paragraph (b) of subsection (4) of the following 25
paragraph: . " ' ' (b) if he is a director, officer or employee of a [banking
institution] bank or mutual building society [or building society]; or".
4 No. 14627 GOVERNMENT GAZETTE, 10 MARCH 1993
Act No. 10, 1993. SOUTH AFRICAN RESERVE BANK AMENDMENT Acr, 1993 · ·
Amendment of section 10 of Act 90 of 1989
3. Section 10 of the principal Act is he~eby amended by the substitution for paragraph (v) of subsection (1) of the following paragraph:
· . " ( v) ·;perform the functions assigned to the Bank by theBanks Act, [1965 (Act No. 23 of 1965)) 1990 (Act No. 94 of 1990), and the Mutual 5 Building Societies Act, 1965 (Act No. 24 of 1965) [and the Building Societies Act, 1986 (Act No. 82 of 1986)].".
Insertion of section lOA in Act 90 of 1989
4. The following section is hereby ins_erted in the principal Act after section 10:
"Maintenance by banks of minimum reserve balances in accounts with 10 B~k - . - . · - . .
lOA. 1 Sub. ect' to the rovisions of subsection . 3 a bank shall maintain an account with the Bank into which account that bank shall from time to time deposit at least such amounts as may be necessary to comply with the requirements of subsection (2) and from which it 15 may, subject to that subsection, from time to time withdraw amounts.
(2) The credit balance in an account. maintained in terms of subsection (1) by a bank, together with the average daily amount of that bank's Reserve Bank notes and subsidiary coin calculated according to the total amounts of those assets held by the bank on all 20 the days of the latest month in respect of which it furnished a return in terms of subsection (11) to the Registrar of Banks designated under section 4 of the Banks Act, 1990 (Act No. 94 of 1990), may at no time during any month amount to less than an amount equal to the sum of amounts representing the percentages, determined in accordance with 25 the provisions of subsection ( 4) by the Governor, of the amounts of
· such different categories of the bank's liabilities as may be specified by the Governor by notice in the Gazette with reference to the time when
·such liabilities fall due or with reference to any other aspect pertaining to such liabilities. 30 . (3r (a) A bank shall,. when required to do so by virtue of a determination contemplated -in. paragraph (b), in addition to the account referred to in subsection (1) maintain an account with the Bank(hereinafter inthis subsection referred-to as a special deposit account) into which account that bank shall from time to thne deposit 35 at least such amounts as may be · necessary to comply with the requirements of paragraph (b); · : · ' .. · · · ·
(b) For the purposes of the maintenance by· a bank of a credit balance in a special deposit account referred tq in paragraph (a), the Governor may from time to time determine further percentages, in 40 addition to percentages determined by him in terms'of subsection (2), of the bank's liabilities as contemplated in subsection (2). .
(c)"'When making a determination in terms of paragraph (b), the Governor may at his discretion direct that interest at a rate determined by him shall be payable to a bank on the daily credit balances in a 45
,. special deposit account maintained by such bank in terms of paragraph _ (a): Provided that the provisions of this paragraph shall not derogate
from the power conferred by section 10(1)(e) upon the Bank to allow interest on any deposit or on a portion of a deposit. · ~ (4) (a) The percentages determined by the Governor in terms of 50 subsection (2) or (3)(b) shall be such percentages as the Governor
: may; having regard to the national economic interest, deem desirable :.to determine from-time to time. · ·
(b) Whenever the Governor has made a determination under
6 No. 14627 GOVERNMENT GAZETIE, 10 MARCH 1993
Act No. 10, 1993 SOUTH AFRICAN RESERVE BANK AMENDMENT ACT, 1993
paragraph (a), he shall in writing inform the Registrar of Banks referred to in subsection (2) of such a determination, and the said Registrar shall as soon as is practicable give written notice of the determination· to· every bank and cause the determination to be
. published by notice in the Gazette. · · 5 . · . (c) Any such determination shall take effect on a date mentioned in
the notice whereby the determination is published in the Gazette in terms of paragraph (b). ·
(5) A bank's liabilities referred to in subsection (2) shall be calculated in such manner and determined at such times as may be 10
· determined by the Governor by notice in the Gazette. . . · ( 6) Any person who contravenes or fails to comply with a provision
· of subsection (1), (2), (3)(a) or (5) shall be_ guilty of an offence and .. liable on conviCtion to a fine, or to iniprisonment'for a period not . exceeding six months. . . . 15
· · (7) If a bank fails to complywith a provision of this ·section, or is unable to comply with any such provision, it shall forthwith in writing report its failure or inability to the Governor, stating the reasons for
· such failure or inability. . . . (8) ~e . Governor may summarily .bring ·a charge in terms of 20
subsection ( 6) against a bank referred to in subsection (7) or, if in the circumstances he deems it fit to do so, condone the failure or inability
. . an'd afford . the . bank concerned.' an opportl!nity' s'ubject to such
. conc;litio·ns a.s the Governor may determine,_ .to· comply with the relevant provision within aspecified period .. · · 25
(9) Irrespective of.· whether criminal proceedings in terms of subsection ( 6) have been or may be instituted against a bank in respect of any failure or inability referred to in subsection (7), the Governor may, subject to any condonation granted under subsection (8), by way
·. of a written notice impose upon that bank, in respect of such failure or 30 inability, a fine not exceeding one7tenth of one per cent of the amount of the shortfall for each day on which such failure or inability continues~ · · · · · · · · · · · _1 ' • • . . (10) A fine imposed under subsection (9) shall be paid to the
. . Governor within such period as may be specified in the relevant 35 · · . notice, .and if the bank concerned fails to pay· the fine· within the · · · specified period, the· Governor may by way of civil action in a
competent court recover from that bank the amount of the fine or any .. portion thereofwhich he may in the circumstances consider justified.
(11) A. bank shall, in orderto enable the Governor to determine 40 whether th~ bank is complying with the provisions of this section,
· .·furnish the Registrar of Banks referred to in subsection (2), subject to . the provisions of subsection (12), with a return on the prescribed form ; . and in. resp~ct of the· prescribed period. · .· ·.. .
(12} A return referred to in subsection (11) shall be prepared in 45 .. . · conformity with generally accepted accounting practice and shall be
furnished to the Registrar of Banks referred to in subsection (2) not later. than the fifteenth business day following upon the last business day of the period to which the return relates.". ·. . . ..
Amendment of section 11 of Act 90 of 1989
5. Section 11 of the principal Act is hereby amended by the substitution for : subsection (1) of the following subsection: ·
: • "(1) The Bank may .appoint inspectors (in either · a permanent or a
50
.. temporary capacity) to carry out inspections of the-affairs, or of any part thereof, of a [banking institution] bank as defined in the Banks Act, [1965 55
' (Act No. 23 of 1965)] 1990 (Act No. 94 of 1990); or a mutual building society
8 No. 14627 GOVERNMENT GAZETIE, 10 MARCH 1993
Act No. 10, 1993 SOUTH AFRICAN RESERVE BANK AMENDMENT ACT, 1993:
as defined in the Mutual Building Societies Act, 1965 (Act No. 24 of 1965) [and a building society as defined in the Building Societies Act, 1986 (Act No. 82 of 1986)].". ·
Substitution of section 12 of Act 90 of 1989
6. The following section is hereby substituted for section 12 of the principal Act: 5
· .. "Inspection of affairs of person, partnership, close corporation, · . company or other juristic person not registered as bank or mutual
building society . • ·
, ·12. (1) If the Governor or a Deputy Governor has reason to suspect . that any person, partnership, close corporation, company or other 10 juristic person who or which is not.registered in terms of the Banks
' Act, [1965 (Act No~ 23 of 1965)] 1990 (Act No. 94 of 1990), as a · [banking institution] bank or in terms of the Mutual Building Societies . Act,.1965 (Act No. 24 o£1965), as a mutual building society [or in terms of the Building Societies Act, ·1986 (Act No. 82 of 1986), as a 15 building society], is carrying on the business of a [banking institution] bank or a mutual building society [or a building society], he may
. [(a) · .. if it is so suspected that the business of a banking institution
(b)
is being carried on] direct the Registrar of Banks referred to in section [3] 4 of the Banks Act, [1965] 1990, [or if it is so suspected that the business of a mutual building
, society or a building society is being carried on, direct the Registrar of Building Societies referred to in section 5 of the
·Building Societies Act, 1986]
20
· to cause the affairs or any part of the affairs of · such person, 25 . partnership, close corporation, company or other juristic person to be
.· inspected by an inspector appointed under section 11(1), in order to establish whether or not the business of a [banking institution] bank or mutual building society [or building society], as the case may be, is being carried on by that person, partnership, close corporation, 30
· company or other juristic person. ·· . . . : • ; (2) The provisions of sections 4, S, 8 and 9 of the Inspection of
Financial Institutions Act, 1984 (Act No. 38 of 1984), shall apply mutatis mutandis in respect of an inspection carried out in terms of subsection (1).". · · 35
Amendment of section 13 of Act 90 of 1989
7. Section 13 of the principal Act is hereby amended by the, substitution for paragraph (b) of the following paragraph:
"(b) without the consent of .the Minister, purchase the shares of any [banking institution or building society] · bank or grant loans or 40 advances upon. the security thereof;". :
Amendment of section 36 of Act 90 of 1989 ·.
8. Section 36 of the principal Act is hereby amended- ( a) by the deletion of the word "and" at the end of paragraph (d); and (b) by the insertion of the following paragraph after paragraph (d): 45
"( dA) any matter which is required or permitted to be prescribed by regulation under this Act;'.':
Short ti~le. a~d commencement
. 9. This Act shall be called the South African' Reserve Ba~k Amendment Act, 1993;' and . shall come into operation on the date. of commencement of the 50 Deposit-t