Singapore legislation

Clause 23

Action to be taken if advances are against the interests of depositors

(1)

Every bank shall send to the Commissioner not later than fifteen days after the last day of each month a statement in the form to be prescribed by the Commissioner showing particulars of all advances, loans or credit facilities granted by it to —

(a)

any of its directors;

(b)

any firm in which it or any of its directors is a partner, manager or agent, or to any individual or firm of whom or of which any of its directors is a guarantor;

(c)

any corporation that is deemed to be related to the bank as described in section 6 of the Companies Act, 1967 (Act 42 of 1967);

(d)

any of its officers, employees or other persons being persons receiving remuneration from it in excess of one year’s remuneration of the officer, employee or person;

(e)

any private or public company in which it or any of its directors, officers, employees or other persons who receive remuneration from the company has an interest as a director, manager, agent or guarantor; or

(f)

any individual in whom, and any firm or company in which, any of its directors has an interest, directly or indirectly, as declared under the provisions of section 24 of this Act other than such advances, loans and credit facilities, particulars of which have already been supplied pursuant to paragraphs (a) to (e) of this subsection.

(2)

If on examination of the particulars supplied by a bank under subsection (1) of this section it appears to the Commissioner that any such advances, loans or credit facilities are being granted to the detriment of the interests of the depositors of that bank, the Commissioner may by order in writing prohibit that bank from granting any further advances, loans or credit facilities or impose such restrictions on the grant thereof as the Commissioner thinks fit, and may further direct that bank to secure repayment of any such first-mentioned advances, loans or credit facilities within such time and to such extent as may be specified in the order.

(3)

Any bank which has been issued with an order by the Commissioner pursuant to this section may within seven days of the making of such order appeal in writing to the Minister, who may, as he thinks fit, confirm, vary or revoke the order by the Commissioner.

Read in full context — Banking Bill →