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Deposit Takers Act 2023

Crisis management and resolution - Conduct of resolution - Bank must act as resolution authority

300: Bank must supervise resolution manager

You could also call this:

"The Bank must check that the resolution manager is doing their job correctly."

Illustration for Deposit Takers Act 2023

The Bank is in charge of making sure a resolution manager does their job properly. You can think of the Bank as a supervisor who checks that the resolution manager is doing things efficiently and effectively. The Bank's job is to supervise the resolution manager so they perform their functions, powers, and duties well.

The resolution manager has to follow the Bank's directions, which is explained in section 353. They also have to talk to the Bank and think about their advice, as stated in section 354. The resolution manager must report back to the Bank, which is covered in sections 355 and 356.

The Bank's supervision helps the resolution manager do their job correctly, and this is an important part of the Bank's role as the resolution authority.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=LMS718146.

Topics:
Money and consumer rights > Banking and loansBusiness > Industry rules
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299: Function of resolution authority, or

"The Bank's job is to help fix problems with banks and other deposit takers in a fair way."

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301: Bank must regularly report to Minister on conduct of resolution, or

"Banks must regularly tell the Minister how they are fixing problems"

Part 7Crisis management and resolution
Conduct of resolution: Bank must act as resolution authority

300Bank must supervise resolution manager

  1. The Bank as the resolution authority must supervise a resolution manager to ensure that the resolution manager efficiently and effectively performs or exercises the resolution manager’s functions, powers, and duties.

  2. See—

  3. section 353, which requires a resolution manager to comply with the Bank’s directions; and
    1. section 354, which requires a resolution manager to consult the Bank and have regard to the Bank’s advice; and
      1. sections 355 and 356, which require a resolution manager to report to the Bank.