Chairperson, hon members, we are guided and driven by a resolve that calls for the building of technical capacities of the government, with a view to a democratic developmental state and a resolution that speaks to the building and standardisation of finance institutions that are accessible to the people and are able to effectively channel financial and institutional resources towards a variety of economic transformation objectives. At the centre of the attainment of these resolutions is the need to build sound banking and financial stability.
The Banks Amendment Bill, inter alia, provides for the following: the amendment of the Banks Act of 1990, so as to bring certain provisions in line with their practical application; the updating of references to legislation and institutions; the provision that a contravention of the Financial Intelligence Centre Act of 2001 is a cause for suspension or cancellation of registration as a bank; the alignment of the Banks Act of 1990 with the Companies Act; and further compliance with the requirements of the Basel Committee on Banking Supervision, and matters connected therewith.
Amongst other things, the Bill empowers the Registrar which, in our case, is the Reserve Bank to cancel a bank's registration after consultation with the Minister and notifying the institutions concerned. The apparent benefits of this amendment will be to increase the speed with which the regulator can withdraw a banking licence.
One lesson that is coming out of the global financial crisis was the speed at which bank regulators had been able to act and avoid a run on a bank, but also the speed with which the anxiety of depositors was managed. To provide for this, the Bill empowers the Governor of the SA Reserve Bank to appoint a curator if he or she deems it desirable in the public interest by notifying, in writing, the chief executive officer or the directors of the said bank.
The primary idea is to target the speed at which the regulator will be able to intervene in cases where the business of banking institutions places a systematic risk on the South African banking system. In addition, the Bill gives clarity on companies acquiring an interest in a company outside the Republic.
Finally, the Bill touches on and gives clarity on the topical issue of remuneration in the banking sector and also in compliance with the King III report. It emphasises the need to establish independent remuneration committees comprising of independence and nonexecutive directors. These amendments are a step in the right direction and deserve everyone's support. Ke a leboga. [I thank you.] [Applause.]
There was no debate.
Declarations of vote: