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Deposit Takers Act 2023

Crisis management and resolution - Minister may give directions

350: Minister may direct Bank relating to exercise of resolution power

You could also call this:

"The Minister can instruct the Bank on how to use its special problem-solving powers."

Illustration for Deposit Takers Act 2023

The Minister can tell the Bank what to do when it comes to using special powers. You can think of these powers like tools the Bank can use to manage problems. The Minister can give directions on how to use these tools.

The Minister can direct the Bank to not use a certain power, or to use it in a specific way. This direction can include conditions that the Bank must follow. The Minister can also tell the Bank to think about certain things before using a power.

The Minister can give other directions to the Bank to help manage risks, like the risk mentioned in section 349(1)(c). The Bank must follow these directions when using its special powers. This helps the Minister and the Bank work together to make good decisions.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=LMS557083.

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Money and consumer rights > Banking and loansBusiness > Industry rules
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349: When this subpart applies, or

"When the government helps a bank in trouble using public money."

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351: Procedural requirements, or

"Rules for when the Minister can give directions to manage risks"

Part 7Crisis management and resolution
Minister may give directions

350Minister may direct Bank relating to exercise of resolution power

  1. The Minister may direct the Bank to do 1 or more of the following:

  2. not exercise a power in the manner referred to in section 349(1)(a)(i):
    1. exercise a power in the manner referred to in section 349(1)(a)(i) only on the terms and conditions that are specified in the direction:
      1. exercise a power in the manner referred to in section 349(1)(a)(ii):
        1. exercise a power in the manner referred to in section 349(1)(a)(ii) on the terms and conditions that are specified in the direction:
          1. have regard to the matters specified in the direction before exercising a power:
            1. take any other action that is specified in the direction to avoid or minimise, or otherwise manage, the risk referred to in section 349(1)(c).