Banks Amendment Draft Bill [PMB -2018]Call for comments opened 07 May 2018 Share this page:
Submissions are now closed (since 24 May 2018)
Rules of the National Assembly
In accordance with section 73(2) of the Constitution of the Republic of South Africa, 1996, notice is given that Mr Nyiko Floyd Shivambu, MP intends to introduce the Banks Amendment Bill, 2018 (“Bill”), in Parliament during the first quarter of 2018/2019. An explanatory summary of the Bill is hereby published in accordance with Rule 276(1)(c) of the Rules of the National Assembly (9th Edition).
The Banks Act, 1990 (Act No. 94 of 1990) (“Banks Act”), amongst other things, imposes certain requirements which an institution must comply with before it may carry on the business of a bank or in the lawful carrying on, of the business of a bank. In terms of the Banks Act, no person may conduct the business of a bank unless such person is a public company and is registered as a bank in terms of the Banks Act. A public company is defined in the Companies Act, 2008 (Act No. 71 of 2008) (“Companies Act”), as a profit company that is not a state-owned company, a private company or a personal liability company. Further in the Companies Act a state owned company is defined as an enterprise that is registered in terms of that Act as a company, and either is listed as a public entity in Schedule 2 or 3 of the Public Finance Management Act, 1999 (Act No. 1 of 1999) (“PFMA”), or is owned by a municipality, as contemplated in the Local Government: Municipal Systems Act, 2000 (Act No. 32 of 2000), and is otherwise similar to an enterprise listed in the PFMA. The requirements imposed by the Banks Act before a person may conduct the business of a bank, and register as such, makes it impossible for a state-owned company registered in terms of the Companies Act to conduct the business of a bank. The Bill seeks to amend the Banks Act to make it possible for state owned companies to register in terms of that Act and to conduct the business of a bank.
The draft Bill will provide:
− For a state-owned company to be able to register and conduct the business of a bank in terms of the Banks Act.
− For a state-owned company to be able to register with the Commissioner, appointed in terms of section 189 of the Companies Act, a memorandum of incorporation of a state-owned company formed for the purposes of conducting the business of a bank
− For a state-owned company to be able to exercise control over a bank.
− For a state-owned company to be eligible to apply for registration as a controlling company.
− For a state-owned company registered as a bank or as a controlling company to be able to continue to be a company in terms of the Companies Act, and the provisions of that Act to, subject to the provisions of section 51(2)1 of the Banks Act, continue to apply to such company to the extent to which they are not inconsistent with any provision of the Banks Act, provided that the provisions of the Companies Act governing the conversion of state-owned companies into other forms of companies shall not apply to any such company.
Comments can be emailed to the Speaker of the National Assembly at email@example.com and to Mr Gumani Tshimomola at firstname.lastname@example.org by no later than Thursday, 24 May 2018.