Banking (Prudential Supervision) Act 1989

If you need more information about this Act, please contact the administering agency: Reserve Bank of New Zealand
73 Determination of applications

(1)

The Bank shall not register any person as a registered bank unless it is satisfied that the business carried on, or proposed to be carried on, by the applicant consists of, or to a substantial extent consists of, or will, or will to a substantial extent, consist of, the borrowing and lending of money, or the provision of other financial services, or both.

(2)

In determining an application under section 70, the Bank must have regard to all of the following:

(a)

the incorporation and ownership structure of the applicant; and

(b)

the size and nature of the applicant’s business or proposed business, or any part of the applicant’s business or proposed business; and

(c)

the ability of the applicant to carry on its business or proposed business in a prudent manner; and

(d)

the standing of the applicant in the financial markets; and

(e)

the suitability for their positions of the directors and senior managers of the applicant; and

(f)

the standing of the owner of the applicant in the financial markets; and

(g)

any other matters that may be prescribed in regulations.

(3)

For the purposes of subsection (2)(g), the Governor-General may, from time to time, by Order in Council, on the advice of the Minister given in accordance with a recommendation of the Bank, make regulations prescribing additional matters to which the Bank shall have regard in considering applications for registration.

(4)

The Bank shall give notice in the Gazette of the registration of any person as a registered bank under this section.

(5)

Regulations under subsection (3) are secondary legislation (see Part 3 of the Legislation Act 2019 for publication requirements).

Compare: 1964 No 134 s 38D(1), (2), (4); 1986 No 131 s 10

Legislation Act 2019 requirements for secondary legislation made under this section
PublicationPCO must publish it on the legislation website and notify it in the GazetteLA19 s 69(1)(c)
PresentationThe Minister must present it to the House of RepresentativesLA19 s 114, Sch 1 cl 32(1)(a)
DisallowanceIt may be disallowed by the House of Representatives LA19 ss 115, 116
This note is not part of the Act.

Section 73(2): replaced, on 21 August 2003, by section 14 of the Reserve Bank of New Zealand Amendment Act 2003 (2003 No 46).

Section 73(5): inserted, on 28 October 2021, by section 3 of the Secondary Legislation Act 2021 (2021 No 7).