Plain language law

New Zealand law explained for everyone

Deposit Takers Act 2023

Supervision of deposit takers - On-site inspection

111: Purpose

You could also call this:

"The Bank's job is to supervise companies that take your money to keep it safe."

Illustration for Deposit Takers Act 2023

The purpose of this part of the law is to help the Bank supervise companies that take deposits from you. The Bank does this by checking if these companies are following the rules. You can think of it like the Bank being a watchdog to make sure your money is safe. The Bank checks things like if the company has good policies in place, if they are telling the truth about their finances, and if they are managing their business well. The Bank also checks if the company is following any plans they made to fix problems, and they look at the company's financial situation to make sure everything is okay. They can even do a big review of all the companies that take deposits to make sure they are all doing the right thing. The Bank can do other related things to help with their supervision job.

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 It might be out of date or be missing some parts.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=LMS514261.

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

110: Admissibility of information, or

"What information can be used in court from the Bank"

Next

112: Bank may conduct on-site inspection, or

"The Bank can visit a business to check they're following the rules."

Part 4Supervision of deposit takers
On-site inspection

111Purpose

  1. The purpose of this subpart is to facilitate the Bank’s ability to undertake prudential supervision of licensed deposit takers by doing 1 or more of the following:

  2. assessing the adequacy of a licensed deposit taker’s policies, processes, controls, or other arrangements for complying with its prudential obligations:
    1. verifying a licensed deposit taker’s compliance with its prudential obligations:
      1. verifying the reliability of information supplied to the Bank by a licensed deposit taker under this Act:
        1. examining any matter relating to the business, operation, or management of a licensed deposit taker in order to understand and identify risks in connection with those matters:
          1. monitoring a licensed deposit taker’s compliance with a remedial notice or plan under subpart 4:
            1. examining the financial position or performance or cash flows of a licensed deposit taker:
              1. carrying out a review of all, or 1 or more classes of, licensed deposit takers, in connection with 1 or more matters of prudential supervision (for example, a review of governance throughout the deposit-taking sector):
                1. doing any other thing that is incidental and related to, or consequential on, any thing that the Bank does under paragraphs (a) to (g).