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BANKING ACT (CHAPTER 24:20)

 

CHAPTER 24:20

BANKING ACT

Act 9/1999, 22/2001 (s. 4), 12/2002, 4/2004, 16/2004, 1/2005, 6/2005, /2009 (s. 54)

ARRANGEMENT OF SECTIONS PART I

PRELIMINARY Section

  1. Short title.
  2. Application of Act.

PART II

ADMINISTRATION 4.  Registrar of Banking Institutions and other officers.

PART III

REGISTRATION OF BANKING INSTITUTIONS

  1. Banking business and banking activities not to be conducted except by registered banking institutions.
  2. Classes of banking business.
  3. Banking activities.
  4. Registration of banking institutions.
  5. Terms and conditions of registration.
  6. Registration certificates.
  7. Register of banking institutions.
  8. Annual fee payable by registered banking institutions.
  9. Amendment of registration.
  10. Cancellation of registration.
  11. Registration and cancellation of registration to be notified in Gazette and in newspaper.

PART IV

CONDUCT OFBUSINESS BY BANKING INSTITUTIONS

  1. Commencement of banking business.
  2. Conduct of banking and other business.
  3. Board of banking institution.
  4. Disqualification for appointment to board of banking institution.
  5. Principal administrative office and principal officers of banking institution.
  6. Banking institution to display its name and fact that it is registered.
  7. Change of name of banking institution.
  8. Certain titles and descriptions reserved for use by registered banking institutions.
  9. Alteration of constitution or rules of conduct by banking institution.
  10. Amalgamations and transfers of business.
  11. Acquisition of significant interest in banking institution.
  12. Establishment of branches, etc., outside Zimbabwe by banking institutions.
  13. Representative offices of foreign banking institutions.

PART V

FINANCIAL REQUIREMENTS

  1. Minimum equity capital of banking institutions.
  2. Minimum reserves to be maintained with Reserve Bank.
  3. Prescription of further financial requirements.

PART VI

RESTRICTIONS ON CERTAIN TRANSACTIONS BY BANKING INSTITUTIONS

  1. Banking institution not to buy or make loans against own shares.
  2. Restriction on payment of dividends, etc., by banking institutions.
  3. Banking institution not to engage in non-banking business without permission.
  4. Restriction on extending credit to officers, employees and certain shareholders and their relatives.

PART VII

ACCOUNTS, STATEMENTS ANDOTHER RECORDS

  1. Accounts and annual financial statement.
  2. Records of transactions.
  3. Statements and other documents to be submitted to Reserve Bank and Registrar.
  4. Display of certain information where banking business is conducted.

PART VIII

AUDIT COMMITTEES, AUDITORS AND AUDIT

  1. Audit committees.
  2. Appointment of auditor.
  3. Disqualifications from appointment as auditor.
  4. Responsibilities of auditor.
  5. Powers of auditor.

PART IX

SUPERVISION AND INVESTIGATION OFBANKING INSTITUTIONS

  1. Responsibilities of Reserve Bank.
  2. Appointment of supervisors and inspectors.
  3. Powers of supervisors.
  4. Action that may be taken by Reserve Bank where banking institution found to have contravened condition of registration, etc.
  5. Investigation into banking institution.
  6. Procedure on completion of investigation.
  7. Action by Reserve Bank following investigation.
  8. Expenses of investigation.

PART X

CURATORSHIP AND WINDING UP OFBANKING INSTITUTIONS

  1. Placing of banking institution under curatorship.
  2. Effect of placing banking institution under curatorship.
  3. Duties and powers of curator.
  4. Freezing of deposits and investments of banking institution under curatorship.
  5. Special provisions relating to winding up or judicial management of banking institution.

PART XI

ADDITIONALPOWERS OF RESERVE BANK AND REGISTRAR

  1. Deposit of approved securities by banking institution against cancellation of registration.
  2. Loans by Reserve Bank to banking institutions.
  3. Extension of time-limits.
  4. Translations of documents, etc., may be demanded.
  5. Powers of Reserve Bank and Registrar where unregistered person is suspected of conducting banking business.
  6. Order prohibiting anticipated or actual contraventions of certain provisions of this Act.
  7. Reserve Bank and Registrar may supply statistics. PART XII

DEPOSIT PROTECTION SCHEME

  1. Interpretation in Part XII.
  2. Deposit Protection Fund.
  3. Deposit Protection Board.
  4. Functions of Board.
  5. Financial year of Fund.
  6. Books of account and audit of Fund.
  7. Contributions to Fund.
  8. Payment of compensation to depositors in event of insolvency of contributory institution.

PART XIII

GENERAL

  1. Requirements for documents submitted to Registrar or Reserve Bank.
  2. False statements, etc.
  3. Preservation of secrecy.
  4. Use of confidential information for personal gain.
  5. Annual reports of Reserve Bank and Registrar.
  6. Exercise of functions by Reserve Bank.
  7. Evidence and presumptions.
  8. Amendment of Acts.
  9. Repeal of Cap. 24:01, transitional provisions and savings.

SCHEDULE

Amendment of Acts.

 

 

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