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Deposit Takers Act 2023

Miscellaneous - Use of words bank, banker, and banking - Limit on use of restricted words in name or title

431: Bank’s policies for giving authorisation

You could also call this:

"How banks decide who can use special names or titles"

Illustration for Deposit Takers Act 2023

The Bank has a statement that outlines its policies for deciding when to give authorisation. You can find more information about this in the Reserve Bank of New Zealand Act 2021, section 254. This statement explains how the Bank makes decisions about authorising deposit takers to use certain names or titles.

The Bank's statement must include its policies on the minimum requirements for a deposit taker to be allowed to use a name or title with a restricted word. The statement is about how the Bank exercises its powers, including those under section 428 and section 429.

The Bank's policies will cover things like what a deposit taker must do to be authorised to use a certain name or title, and what rules they must follow.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=LMS542070.

Topics:
Money and consumer rights > Banking and loansBusiness > Industry rules
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430: Authorisation extends to Registrar of Companies, etc, or

"Your authorisation also helps other important people, like the Registrar of Companies."

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432: Conditions, or

"Rules the Bank sets when giving permission"

Part 8Miscellaneous
Use of words bank, banker, and banking: Limit on use of restricted words in name or title

431Bank’s policies for giving authorisation

  1. The Bank’s statement of prudential policy under section 254 of the Reserve Bank of New Zealand Act 2021 must outline in general terms the Bank’s policies about how the Bank acts, or proposes to act, when exercising a power under section 428 or 429.

  2. The statement must set out the Bank’s policies in relation to minimum requirements for a deposit taker to be authorised to use a name or title that includes a restricted word.

    Example

    A deposit taker that is authorised to use bank may be required to comply with higher financial strength requirements than those that would otherwise apply.