Singapore legislation

Clause 21

of Banking Bill

Clause 21

Action by the Minister if bank unable to meet obligations or conducting business to the detriment of depositors

Where —

(a)

a licenced bank informs the Minister —

(i)

that it considers that it is likely to become unable to meet its obligations; or

(ii)

that it is about to suspend payment; or

(b)

a licensed bank becomes unable to meet its obligations or suspends payment; or

(c)

after investigations is made under section 17, 18, or 19 of this Ordinance the Inspector is of the opinion that a licensed bank —

(i)

is likely to become unable to meet its obligations or is about to suspend payment; or

(ii)

is carrying on its business in a manner detrimental to the interests of its depositors,the Minister may on the advice of the Inspector —

(1)

require the bank forthwith to take such steps as he may consider necessary to rectify the matter;(2)appoint a person to advise the bank in the proper conduct of its business;(3)direct the Inspector to assume control and carry on the business of the bank; or

(4)

direct that a petition be presented to the High Court for the winding up of the bank by the Court.

Read in full context — Banking Bill →