| (1) |
If in the opinion of the Reserve Bank— |
| (a) |
a designated institution is, or will likely be, unable to meet its obligations, irrespective of whether or not the designated institution is insolvent; and |
| (b) |
it is necessary to ensure the orderly resolution of the designated institution to— |
| (i) |
maintain financial stability; or |
| (ii) |
in the case of a bank or a member of a group of companies of which a bank is a member, to protect depositors of the bank, |
the Reserve Bank may recommend to the Minister that the designated institution be placed in resolution.
| (2) |
The Minister may, after considering a recommendation in terms of subsection (1) and if he or she considers that— |
| (a) |
the designated institution is or will probably be unable to meet its obligations, whether or not the designated institution is insolvent; and |
| (b) |
it is necessary to ensure the orderly resolution of the designated institution— |
| (i) |
to maintain financial stability; or |
| (ii) |
in the case of a bank or a member of a group of companies of which a bank is a member, to protect depositors of the bank, |
make a written determination, addressed to the Governor, placing the designated institution in resolution.
| (3) |
The ‘obligation’ contemplated in subsections (1) and (2) includes an obligation in terms of a prudential standard. |
| (4) |
The Reserve Bank must notify the Managing Director or the chairperson of the board of directors of the designated institution of the determination by the Minister. |
| (5) |
The Reserve Bank must publish each determination made in terms of subsection (2). |
| (6) |
Failure to comply with subsection (4) or (5) does not invalidate a recommendation or a determination in terms of this section. |
[Section 166J inserted by section 51 of the Financial Sector Laws Amendment Act, 2021 (Act No. 23 of 2021), Notice No. 789, GG45825, dated 28 January 2022- effective 1 June 2023 per (b)(ii) of Commencement Notice No. 3202, GG48294, dated 24 March 2023]
Statistics Act, 1999
