Section 79: Powers of central bank under this Part

79. Powers of central bank under this Part (1) The central bank may, at the direction of its Board— (a) confirm and facilitate the actions of the receiver under section 78; (b) purchase any assets of the financial institution or assume any of its liabilities; and (c) make loans to any other financial institution merging or consolidating with or assuming the liabilities and purchasing the assets of the financial institution. (2) The central bank may provide any investor acquiring control of, merging with, consolidating with or acquiring the assets of a financial institution with the financial assistance that it is authorised to provide under this section. B3 – 55 [Issue 9] Banking Act (3) The central bank may, pending such further action as is contemplated under subsection (1) or (2), grant a licence for the operation of a temporary financial institution for not more than 2 years. (4) The temporary financial institution may— (a) assume such deposits and other liabilities; and (b) purchase such assets of a financial institution that becomes subject to this Part, as the central bank thinks fit. (5) The board of directors of the temporary financial institution shall be appointed by and be responsible to the central bank. (6) In determining the course of action to be taken in any given case, the Board shall have regard to— (a) the financial implications thereof, and any funds that it may administer in order to protect depositors, taking into consideration the ultimate viability of the temporary financial institution; (b) the convenience to the community in maintaining banking facilities; and (c) the tendency to create a monopoly or to restrict competition in the area served. [S. 79 amended by s. 4 (m) of Act 9 of 2015 w.e.f. 14 May 2015; s. 3 (q) of Act 18 of 2016 w.e.f. 7 September 2016.]