Document ID: chunk:federal_register_of_legislation:C2004A03877:front:0:p4
Version: federal_register_of_legislation:C2004A03877
Segment Type: other
Provision Reference: 
Character Range: 8471–11396

have effect as if they had been imposed under subsection 9 (4) of the Principal Act as amended by this Act.

6. After section 11 of the Principal Act the following Division is inserted:

"Division 1a—Prudential Supervision and Monitoring of Banks

Prudential requirements may be prescribed by the regulations
"11a. The regulations may make provision for and in relation to requiring banks to observe such requirements in relation to prudential matters as are specified in, or ascertained in accordance with, the regulations.

Reserve Bank to monitor prudential matters
"11b. The functions of the Reserve Bank include:
    (a) the collection and analysis of information in respect of prudential matters relating to banks;

    (b) the encouragement and promotion of the carrying out by banks of sound practices in relation to prudential matters; and
    (c) the evaluation of the effectiveness and carrying out of those practices.

Division not to limit operation of other provisions
"11c. Nothing in this Division is intended to limit the operation of any other provision of this Act or of the Reserve Bank Act 1959.".

Supply of information
7. Section 13 of the Principal Act is amended by omitting from subsection (3) "an officer of the Reserve Bank Service" and substituting "a person".

Banks unable to meet obligations
8. Section 14 of the Principal Act is amended:
    (a) by omitting paragraph (2) (c) and substituting the following paragraph:
        "(c) the Reserve Bank is of the opinion that a bank is likely to become unable to meet its obligations or is about to suspend payment;";
    (b) by omitting from subparagraph (2) (d) "an officer of the Reserve Bank Service" and substituting "a person";
    (c) by omitting from subsection (3) "an officer" and substituting "a person";
    (d) by omitting from subsection (3) "the officer" (wherever occurring) and substituting "the person";
    (e) by omitting from subsection (3) "he" and substituting "the person".

Indemnity
9. Section 15 of the Principal Act is amended by omitting "officer of the Reserve Bank Service" and substituting "other person".

Assets of banks
10. Section 16 of the Principal Act is amended by omitting subsection (3).

11. Division 3 of Part II of the Principal Act is repealed and the following Division is substituted:

"Division 3—Non-callable Deposits

Interpretation
"17. In this Division:
    'determination' means a determination under section 20;
    'eligible assets' means assets specified in a notice under subsection 18 (1);
    'eligible liabilities' means liabilities specified in a notice under subsection 18 (2);

    'month' means any of the 12 months of the year;
    'non-callable deposit ratio' means the percentage specified in a determination.

Base for calculating deposits—eligible assets or eligible liabilities
"18. (1) The Reserve Bank may, by notice in the Gazette, direct that specified assets are eligible