Deposit-Taking Institutions Amendment Act 9 of 1993

The Deposit-Taking Institutions Amendment Act 9 of 1993 intends:

• to amend the Deposit-taking Institutions Act, 1990, so as
  • to substitute for the expression "deposit-taking institution" or any derivative thereof, wherever that expression or derivative appears in the said Act, the word "bank" or the appropriate derivative thereof;
  • to further define the expression "the business of a bank";
  • to create criteria according to which it can be established whether or not a particular person is a fit and proper person to hold the office of a director or an executive officer of a bank or a controlling company;
  • to allow a right of appeal to the board of appeal against a decision of the Registrar of Banks in connection with an application for authorization to establish a bank;
  • to compel the Registrar of Banks to give notice in the Gazette of every consent granted by him to the establishment in the Republic of a representative office of a foreign institution;
  • to provide for the submission of a written report to the Registrar of Banks regarding the advisability of the continuation of the curatorship of a bank that is under curatorship;
  • to further define the expressions "primary share capital", "primary unimpaired reserve funds", "secondary share capital" and "secondary unimpaired reserve funds'', respectively;
  • to substitute the expression "debt instruments" for the word "debentures" in section 70;
  • to make further provision in connection with the minimum share capital and unimpaired reserve funds to be maintained by a subsidiary by way of which a bank or controlling company conducts the business of a bank in a country other than the Republic;
  • to repeal the provisions relating to the maintenance by banks of a minimum reserve balance with the South African Reserve Bank, in view of the insertion of corresponding provisions in the South African Reserve Bank Act, 1989;
  • to render the acquisition by a bank or an associate thereof of more than 49 per cent of the issued shares of a registered insurer subject to approval by the Registrar of Banks; and
  • to prescribe a penalty for a further offence; and
• to provide for matters connected therewith.

Commencement

10 March 1993