Plain language law

New Zealand law explained for everyone

Deposit Takers Act 2023

Licensing of deposit takers - Bank’s approval required for certain changes - Process for approval

50: Bank's decision on approval

You could also call this:

"The bank decides whether to approve a request and tells you their decision within 20 working days."

Illustration for Deposit Takers Act 2023

The Bank looks at a request for approval and can decide to approve it or not. You might get approval with no conditions, or with some conditions that the Bank sets. The Bank can also decide not to approve your request. The Bank must tell you and anyone else who asked for approval about their decision within 20 working days. This is after they get all the information they need to make a decision. The Bank's approval can come with conditions that are set out in regulations or that relate to things in the regulations. If the Bank says no to your request, they must explain why they made that decision when they tell you.

This text is automatically generated. It might be out of date or be missing some parts. Find out more about how we do this.

This page was last updated on

View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=LMS494570.

Topics:
Money and consumer rights > Banking and loansBusiness > Industry rules
Previous

49: Bank must consider whether it would still be satisfied of licensing matters, or

"Banks must check if they still agree with important rules before okaying changes."

Next

51: Offence to contravene condition of approval, or

"Breaking approval rules can lead to a big fine"

Part 2Licensing of deposit takers
Bank’s approval required for certain changes: Process for approval

50Bank's decision on approval

  1. The Bank may, after considering a request for approval under this subpart,—

  2. give its approval unconditionally or subject to any conditions that the Bank may impose under subsection (3); or
    1. refuse to give its approval.

      1. The Bank must give notice of its decision to the licensed deposit taker and any other person who made the request within 20 working days after receiving both of the following:

      2. all of the information that the Bank reasonably requires to assist it in determining whether to give its approval:
        1. all reports that the Bank has arranged to receive under this subpart in respect of the matter.

          1. The approval may be subject to any conditions prescribed by the regulations or conditions that relate to matters prescribed in the regulations.

          2. If the Bank refuses to give its approval, the notice under subsection (2) must contain a statement of its reasons for doing so.