Hon Chairperson, before I get to the report, I would like to mention that the hon Von Brandis was an hon member of the Select Committee on Finance and the Select Committee on Appropriations. He added value to the work of both these committees. Our condolences go to his wife and his family. May his soul rest in peace.
A sound banking system and financial stability are key to ensuring long- term economic growth. Failed banks have the potential to cause substantial disruption to the financial system and impact on the lives of ordinary South Africans. In order to promote the soundness of the banking system, it is imperative that the regulation and supervision of banks is based on international standards and best practice.
The Banks Act, Act 94 of 1990, contains the framework for the regulation and supervision of banks and bank-controlling companies in South Africa. Although the Banks Act contains extensive provisions relating to the resolution of a failed bank and concomitant powers afforded to the curator appointed to effect such resolution, it has become necessary to revise some of the provisions of section 69 of the Banks Act that are unnecessarily stifling such resolution efforts.
The objectives of the Bill are, firstly, to provide an alternative to recovery of a bank within the existing corporate entity; secondly, to facilitate the transfer of all or part of a bank's business to a successor entity, pursuant to a transfer under section 54 of the Banks Act; and thirdly, to facilitate the implementation of the above steps by the curator.
The amendments in the Bill refer to the powers of the curator to dispose of assets and to manage the bank and make decisions on behalf of corporate shareholders in order to avoid additional fetters on his or her ability to perform his or her duties. The amendments in this Bill also empower the Minister to enable the curator to raise funds from the SA Reserve Bank, or any of its entities, to provide security over the assets in respect of such funding.
The Minister may also enable the curator to propose and enter into an agreement or compromise between the bank under curatorship and all its creditors, in terms of section 155 of the Companies Act. The Bill also expresses the provision that any administration action taken in terms of the Banks Act, including by a curator, is subject to the Promotion of Administrative Justice Act, Act 3 of 2000.
The Select Committee on Finance unanimously approved the amendments. I move that the House consider this report. Thank you. [Applause.]
Declarations of vote: