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Banks Act, 1990 (Act No. 94 of 1990)

Chapter II : Administration of Act

4. Authority and Deputy Registrar of Banks

[Section 4 heading substituted by section 290, item 15 in Schedule 4, of Act No. 9 of 2017]

 

(1) [Section 4(1) deleted by section 290, item 4 in Schedule 4, of Act No. 9 of 2017]]

 

(2) [Section 4(2) deleted by section 290, item 4 in Schedule 4, of Act No. 9 of 2017]]

 

(3) The Authority may from time to time enter into a written cooperation arrangement, including a memorandum of understanding, with a host supervisor, consolidating supervisor or any other person or institution as the Authority may deem fit, which cooperation arrangement may include—
(a) a provision that the Authority may accept the methods and approval processes used by a foreign institution or bank at group level: Provided that—
(i) such methods and approval processes comply with such conditions as may be prescribed; or
(ii) the Authority may impose additional conditions or requirements;
(b) a provision that the Authority may conduct an on-site examination or an inspection of a bank or controlling company that is conducting business by means of a branch, subsidiary company, joint venture or related entity within the jurisdiction of the relevant host supervisor or consolidating supervisor, as the case may be;
(c) a provision that such host supervisor or consolidating supervisor may conduct an on-site examination or an inspection of a branch, subsidiary company, joint venture or related entity of a bank or a controlling company;
(d) a provision that the Authority may share information relating to the financial condition and performance of branches, subsidiaries, joint ventures or related entities of a bank or controlling company with the relevant host supervisor;
(e) a provision that the Authority—
(i) be informed by the relevant host supervisor of adverse assessments of qualitative aspects of the foreign operations of a bank or controlling company; or
(ii) may provide information to the relevant host supervisor regarding significant problems that are being experienced within a bank, controlling company or banking group;
(f) such other matters as the Authority may deem relevant.

[Section 4(3) inserted by section 2 of Act No. 20 of 2007]

 

(4) The Authority shall implement and maintain a supervisory review process, which process may include—
(a) an on-site examination, inspection or review of a bank or controlling company and its respective branches, subsidiaries, joint ventures or related entities, within or outside the Republic;
(b) an off-site review of a bank or controlling company and its respective branches, subsidiaries, joint ventures or related entities, within or outside the Republic;
(c) a discussion with an executive officer, a chief executive officer or an employee in charge of a risk management function of a bank or controlling company, including a discussion with an executive officer responsible for compliance or internal audit of a bank or controlling company;
(d) a discussion with a member of the board of directors or a member of a board-appointed committee of a bank or controlling company;
(e) a review of the work done by an external auditor of a bank or controlling company;
(f) a review of reports submitted in terms of this Act by a bank, controlling company or banking group.

[Section 4(4) inserted by section 2 of Act No. 20 of 2007]

 

(5) In order to ensure the appropriate usage of an external credit assessment issued by an eligible institution, a bank, a controlling company or a branch, the Authority—
(a) shall assign external credit ratings to risk weights as may be prescribed from time to time; and
(b) shall publicly disclose which external credit assessment or rating issued by an eligible external credit assessment institution relates to which prescribed risk weight.

[Section 4(5) inserted by section 2 of Act No. 20 of 2007]

 

(6) The Authority may implement such international regulatory or supervisory standards and practices as he or she deems appropriate after consultation with banks.

[Section 4(6) inserted by section 2 of Act No. 20 of 2007]

 

(7) Notwithstanding section 33 of the South African Reserve Bank Act, 1989 (Act No. 90 of 1989), the Authority—
(a) may from time to time publicly disclose the following information:
(i) Criteria relating to the review of the internal capital assessments of banks;
(ii) factors relating to the setting of capital adequacy ratios by the Authority that are in excess of the minimum capital adequacy ratio as prescribed;
(b) shall from time to time publicly disclose the following information:
(i) The process and criteria for recognising eligible institutions; and
(ii) international regulatory or supervisory standards and practices implemented in terms of subsection (6).

[Section 4(7) inserted by section 2 of Act No. 20 of 2007]