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Deposit Takers Act 2023

Crisis management and resolution - Resolution manager - Appointment of resolution manager

359: Bank holds office as resolution manager if no other person holds office

You could also call this:

"The Bank helps fix a deposit taker that's in trouble if no one else is in charge."

Illustration for Deposit Takers Act 2023

If a deposit taker is in trouble and no one is in charge of fixing it, the Bank takes over. The Bank becomes the resolution manager when this happens. This does not stop the Bank from using its other powers, like those in section 357.

When the Bank takes over, it is in charge of the deposit taker that is in trouble. You can think of the Bank as a helper that steps in when needed. The Bank's job is to manage the situation and make things right.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=LMS722539.

Topics:
Money and consumer rights > Banking and loansBusiness > Industry rules
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358: Bank may appoint itself as resolution manager, or

"The Bank can be in charge of fixing problems with a deposit taker."

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360: How this Part applies if Bank holds office as resolution manager, or

"What happens when the Bank is in charge of fixing a problem with a deposit taker"

Part 7Crisis management and resolution
Resolution manager: Appointment of resolution manager

359Bank holds office as resolution manager if no other person holds office

  1. If a licensed deposit taker (A) is in resolution but no other person holds office as resolution manager in respect of A, the Bank holds office as the resolution manager.

  2. This section does not limit the Bank’s powers under section 357.