Singapore legislation
Clause 6
Clause 6
New sections 24A and 24B
The principal Act is hereby amended by inserting immediately after section 24 thereof the following new sections: —“Special loans to banks and financial institutions24A. The Authority may, if it thinks such action is necessary to safeguard monetary stability, make a loan or advance to a bank carrying on business under the Banking Act (Cap. 182) or to such financial institutions or class of financial institutions as the Authority may from time to time approve against such form of security as the Authority may consider sufficient.Power to issue directions to financial institutions24B.—
The Authority may, if it thinks it necessary in the public interest, request information from and make recommendations to such financial institutions as the Authority may from time to time approve and may issue directions for the purpose of securing that effect is given to any such request or recommendation.(2) Before issuing any direction under subsection (1) of this section the financial institution or financial institutions concerned shall, unless the Authority in respect of any particular direction decides that it is not practicable or desirable, be given an opportunity to make representations with regard to the proposed direction within such time as the Authority shall specify.(3) Upon receipt of any representations referred to in subsection (2) of this section the Authority shall consider them and, may —
reject such representations; or
amend or modify the proposed direction in accordance with the representations, or otherwise,and in either event, it shall thereupon issue a direction in writing, to such financial institution or financial institutions, as the case may be, requiring that effect be given to the proposed direction or to the proposed direction as subsequently amended or modified by it within a reasonable time, and the financial institution or financial institutions, as the case may be, shall comply with such direction.(4) Any financial institution that fails or refuses to comply with a direction given under this section shall be guilty of an offence under this Act and shall be liable on conviction to a fine not exceeding five thousand dollars.”.