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Deposit Takers Act 2023

Regulation of deposit takers - Standards - Bank’s approval may be required

91: Standards may require Bank’s approval

You could also call this:

"Sometimes you need the Bank's okay to do certain things, and you have to follow their rules to get it."

Illustration for Deposit Takers Act 2023

The law says a standard can require you to get approval from the Bank for certain things, like matters referred to in sections 78 to 90. You might need the Bank's approval for things like how you calculate if you have enough capital. The Bank has to decide if it will give you approval in a fair and reasonable way.

If a standard says you need the Bank's approval, it must explain how the Bank will make its decision and what conditions you must meet. You have to ask the Bank for approval in the way it says you should. The Bank will tell you how to do this.

If you do not follow the conditions of the Bank's approval, it is like you broke the standard that required you to get approval in the first place. This can have serious consequences, and you can learn more about this in subpart 2 of Part 5 and Part 5.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=LMS522074.

Topics:
Money and consumer rights > Banking and loansBusiness > Industry rules
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90: Other matters, or

"Rules for deposit takers: what they can and can't do, and how they work"

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92: Standards may provide for matters to be specified by conditions, or

"Rules can be tailored to fit each deposit taker's situation using special conditions."

Part 3Regulation of deposit takers
Standards: Bank’s approval may be required

91Standards may require Bank’s approval

  1. A standard may impose a requirement for the Bank’s approval in connection with a matter referred to in any of sections 78 to 90.

    Examples

    A standard may require the Bank’s approval relating to capital recognition, capital repayment, and methodologies for calculating capital adequacy.

    A standard may require a deposit taker to obtain the Bank’s approval before establishing an overseas branch or subsidiary.

  2. If a standard provides for the Bank’s approval,—

  3. the standard must set out an appropriate manner in which the Bank must decide whether to give its approval and any conditions of the approval (for example, by specifying the matters that the Bank must have regard to, or be satisfied of, when deciding those matters); and
    1. a request for approval must be made in the manner specified by the Bank.

      1. A contravention of a condition of the Bank’s approval must be treated as being a contravention of the standard that imposed the requirement for the Bank’s approval.

        Guidance note

        See subpart 2 of Part 5, which allows the court to impose a pecuniary penalty for a contravention of a standard (which includes a contravention of a condition of the Bank’s approval).