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Deposit Takers Act 2023

Miscellaneous - Trans-Tasman co-operation

440: Bank’s duty to consult

You could also call this:

"Banks must talk to authorities before making big decisions"

Illustration for Deposit Takers Act 2023

You need to know what the Bank must do if it thinks an action will affect Australia's financial system. The Bank must talk to Australian financial authorities before taking the action if it is reasonably practicable. You can find more information by looking at the link to the 1989 legislation.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=LMS497928.

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Topics:
Money and consumer rights > Banking and loans
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439: Trans-Tasman co-operation, or

"Working with Australia to keep the financial system stable"

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441: Failure to comply with subpart does not affect validity of Bank’s actions, or

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Part 8Miscellaneous
Trans-Tasman co-operation

440Bank’s duty to consult

  1. This section applies if the Bank has reasonable cause to believe that an action it proposes to take under this Act or any other prudential legislation is an action that is likely to have a detrimental effect on financial system stability in Australia.

  2. Before taking the proposed action, the Bank must, to the extent it considers reasonably practicable in the circumstances having regard to urgency or any other similar constraint, consult and consider the advice of every Australian financial authority it considers to be relevant in the circumstances.

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