Singapore legislation
Clause 44
of Banking Bill
Clause 44
Action by Commissioner if bank is unable to meet obligations, etc., or conducting business to the detriment of depositors
(1)
Where —
a bank informs the Commissioner that it is likely to become unable to meet its obligations, or that it is insolvent, or about to suspend payments;
a bank becomes unable to meet its obligations, or is insolvent, or suspends payments;
after an inspection or investigation is made under section 39 or 40 of this Act, the Commissioner is of the opinion that the bank —
is carrying on its business in a manner likely to be detrimental to the interest of its depositors or its creditors;
is insolvent or is likely to become unable to meet its obligations or is about to suspend payment;
has contravened or failed to comply with any of the provisions of this Act; or
has contravened or failed to comply with any condition attached to its licence; or
the Commissioner considers it in the public interest to do so,the Commissioner may exercise such one or more of the powers specified in subsection (2) of this section as appears to him to be necessary.
(2)
Subject to subsection (1) of this section, the Commissioner may —
require the bank concerned forthwith to take any action or to do or not to do any act or thing whatsoever in relation to its business as he may consider necessary;
appoint a person to advise that bank in the proper conduct of its business;
assume control of and carry on the business of that bank or direct some other person to assume control of and carry on the business of that bank.
(3)
The Commissioner shall report to the Minister the circumstances of any action taken by him under the provisions of subsection (2) of this section.
(4)
The Commissioner may, upon representation made to him or on his own motion, modify or cancel any action taken by him under subsection (2) of this section, and in so modifying or cancelling any action may impose such conditions as he thinks fit, subject to which the modification or cancellation shall have effect.
(5)
Any person aggrieved by the action of the Commissioner under the powers conferred by paragraphs (a), (b) and (c) of subsection (2) of this section may appeal to the Minister.
(6)
An appeal under subsection (5) of this section shall not, unless the Minister otherwise decides, stay the exercise of the powers conferred by this section pending the determination of the appeal.