PRETORIA PUBLISHES AMENDMENT BILL TO STRENGTHEN CENTRAL BANK

PRETORIA– The National Treasury has published for public consultation the Financial Sector Laws Amendment Bill, which will strengthen the South African Reserve Bank (SARB) to manage the orderly resolution or winding down of a failing financial institution.

The Treasury published the Bill for public comment on Tuesday after its approval by Cabinet.

“The amendments will strengthen the ability of the South African Reserve Bank to manage the orderly resolution or winding down of a failing financial institution, with minimum disruption to the broader economy,” it said.

“In addition, the amendments will ensure that depositors’ funds are protected in the event of a bank failure, and that depositors’ funds will be paid out speedily to protect the most vulnerable customers.”

These amendments apply to all registered South African banks, including mutual and co-operative banks.

The National Treasury, the South African Reserve Bank and the Financial Sector Conduct Authority will be convening meetings and workshops with interested stakeholders.

Source: NAM NEWS NETWORK