Singapore legislation
Section 20
Section 20
Revocation of bank licence
(1)
The Authority may by order revoke a bank licence —
if the Authority is satisfied that the bank holding that bank licence —
has ceased to transact banking business in Singapore;
has provided information or documents to the Authority in connection with its application for a bank licence which is or are false or misleading in a material particular;
if it is a bank incorporated outside Singapore, has had its bank licence or authority to operate withdrawn by the supervisory authority which is responsible, under the laws of the country or territory where the bank is incorporated, formed or established, for supervising the bank;
proposes to make, or has made, any composition or arrangement with its creditors or has gone into liquidation or has been wound up or otherwise dissolved;
is carrying on its business in a manner likely to be detrimental to the interests of the depositors of the bank or has insufficient assets to cover its liabilities to its depositors or the public;
is contravening or has contravened any provision of this Act;
has been convicted of any offence under this Act or any of its directors or officers holding a managerial or executive position has been convicted of any offence under this Act;
is contravening or has contravened any provision of the Deposit Insurance and Policy Owners’ Protection Schemes Act 2011 or any Rules issued by the deposit insurance and policy owners’ protection fund agency under the Deposit Insurance and Policy Owners’ Protection Schemes Act 2011; or
is contravening or has contravened any provision of the Monetary Authority of Singapore Act 1970 or any direction issued by the Authority under that Act;
if, upon the Authority exercising any power under section 49(2) or the Minister exercising any power under Division 2, 3, 4 or 4A of Part 4B of the Monetary Authority of Singapore Act 1970 in relation to the bank, the Authority considers that it is in the public interest to revoke the bank licence;
where the bank holding the licence is a foreign‑owned bank incorporated in Singapore, if the parent supervisory authority of the bank has withdrawn the licence or authority to operate of the parent bank of the bank; or
if the Authority is satisfied that it is in the public interest to do so.
(2)
The Authority must before revoking any bank licence under subsection (1) —
cause to be given to the bank concerned written notice of its intention to do so, specifying a date, at least 21 days after the date of the notice, upon which the revocation will take effect; and
call upon the bank to show cause to the Authority why the bank licence should not be revoked.
(3)
When the Authority has revoked a bank licence under subsection (1), the Authority must immediately inform the bank of the revocation.
(4)
Any bank whose bank licence has been revoked under this section has a right of appeal to the General Division of the High Court against the order of revocation.
(5)
An order of revocation made by the Authority does not take effect until the end of 21 days after the Authority has informed the bank of the order.
(6)
If within that period the bank concerned gives due notice of appeal to the General Division of the High Court, the order does not take effect unless the order is confirmed by the General Division of the High Court or the appeal is for any reason dismissed by the General Division of the High Court.
(7)
The making of an appeal by a bank under this section in no way affects the exercise of any power by the Authority under section 49, 50, 51, 52 or 53, or the exercise of any power by the Minister under Division 2, 3, 4 or 4A of Part 4B of the Monetary Authority of Singapore Act 1970, in relation to the bank.