This Act was repealed on 2023-08-08 by Banking Institutions Act, 2023.
This is the version of this Act as it was when it was repealed.
Related documents
Banking Institutions Act, 1998
Act 2 of 1998
- Published in Government Gazette 1808 on 9 March 1998
- Assented to on 20 February 1998
- Commenced on 1 April 1998 by Commencement of the Banking Institutions Act, 1998
- [This is the version of this document from 20 May 2019 and includes any amendments published up to 11 October 2024.]
- [Amended by Banking Institutions Amendment Act, 2010 (Act 14 of 2010) on 5 November 2010]
- [Amended by Removal of Post Office Savings Bank from Section 2(2) of Banking Institutions Act (Government Notice 34 of 2011) on 1 April 2011]
- [Amended by Deposit Guarantee Act, 2018 (Act 16 of 2018) on 20 May 2019]
- [Repealed by Banking Institutions Act, 2023 (Act 13 of 2023) on 8 August 2023]
Part I – PRELIMINARY PROVISIONS
1. Definitions
2. Application of Act
Part II – ADMINISTRATION OF ACT
3. Guidelines, circulars or notices by the Bank
4. Limitation of liability
Part III – AUTHORISATION TO ESTABLISH A BANKING INSTITUTION
5. Prohibition on conducting of banking business by unauthorised persons
6. Investigations
7. Repayment of monies by unauthorised persons
8. Name of banking institution
9. Prerequisite for conducting banking business
10. Application for authorisation to establish a banking institution
11. Granting or refusal of application for authorisation and certificate to conduct banking business
12. Duration and conditions of authorisation
12A. Application for registration as controlling company
12B. Granting or refusal of application for registration as controlling company
12C. Cancellation by Bank of registration of controlling company
12D. Investment by controlling company
A controlling company investing -12E. Restructuring within group of companies
No restructuring of companies within a group, of which a banking institution or a controlling company or a subsidiary of banking institution is a member, may be effected without the prior written approval of the Bank.[section 12E inserted by Act 14 of 2000]13. Annual fees
14. Subsidiaries, branch offices, representative offices and other interests of a banking institution
15. Cancellation of authorisation
16. Repayment of deposits upon cancellation of authorisation
17. Cancellation of authorisation upon winding-up
When the affairs of a banking institution have been completely wound up in terms of section 419 of the Companies Act -18. Publication of information relating to banking institutions
The Bank, by notice in the Gazette in the prescribed form and manner -19. Representative office of foreign banking institution
19A. Branches of foreign banking institutions
19B. Application of this Act to branches of foreign banking institutions
Part IV – SHAREHOLDING IN BANKING INSTITUTIONS
20. Restriction on shareholding and changes in shareholding
21. Shareholder’s register and registration of shares
22. Furnishing of information by shareholders
23. Absence of wrongful intent
If a banking institution or a controlling company, or any director, officer, employee or agent of the banking institution or controlling company, on the strength of information or particulars reasonably obtained by him or her, in good faith and without wrongful intent, acts, or fails to act, in contravention of section 20(1), (2), (3), (4) or (5) or 21(1), (2), (4), (6) or (7), such act or failure to act shall not constitute an offence.24. Effects of registration of shares contrary to Act
25. Restriction of right to control banking institution
26. Prohibitions and restrictions
Part V – PRUDENTIAL REQUIREMENTS AND LIMITATIONS
27. Standards of corporate behaviour
28. Minimum capital funds
28A. Minimum capital funds in respect of banking group
29. Composition of capital funds
The Bank may, for the purposes of section 28, determine the composition and proportions of the different classes of capital constituting capital funds contemplated in, and other requirements and criteria of approval relating to, the last mentioned section.30. Provision to be made for certain matters
31. Minimum liquid assets
32. Restriction on dividends
33. Minimum local assets
34. Large exposures and concentrations of credit
35. Lending against own shares or debt instruments
No banking institution shall, directly or indirectly, lend money or issue guarantees against the security of -36. Exposure to directors, to officers with managerial responsibilities or to shareholders to be secured
37. Terms of exposure to directors, officers and shareholders
The Bank must determine the criteria and conditions to be employed for establishing the acceptability or evaluation of collateral for the purpose of this Act.[section 37 substituted by Act 14 of 2010]38. Exposure to holding companies, subsidiaries and affiliates
39. Restriction on commercial activities
40. Limitation on investment in property
Part VI – DIRECTORS, PRINCIPAL OFFICERS AND AUDITORS
41. Directors and principal officers and executive officers of banking institutions
42. Audit committee
43. Appointment of auditor
44. Disqualification for appointment as auditor
No person shall qualify to be appointed or to act as an auditor of a banking institution or controlling company, if -45. Duties and functions of auditor
Part VII – SUPERVISION BY BANK
46. Financial and other records
47. Financial statements
48. Disclosure of paid-up share capital
If a banking institution publishes a statement or issues a document in which the amount of its authorised share capital is disclosed, the amount of its paid-up share capital shall also be disclosed in such statement or document.49. Furnishing of certain statements, notices, returns and information
50. Reporting of certain transactions by banking institutions
The Bank may require a banking institution to report to the Bank, or to any other person or authority the Bank may specify, any money transaction which it becomes aware of and which indicates or arises a suspicion that the person conducting, or any person involved in, the transaction may be engaged in an illegal activity.[The word “arises” is incorrect in this sentence. The intended wording may have been “raises” or “arouses” or “gives rise to”.]51. Extension of time
If a banking institution or controlling company has to furnish any information or document to the Bank in terms of this Act within a specified period of time, the Bank may, at the written request of the banking institution or controlling company, in writing extend the period of time specified for the furnishing of the information or document, as the case may be.[section 51 amended by Act 14 of 2010 by the insertion after the expression “banking institution” of the expression “or controlling company”]52. Examination by Bank
53. Production of records and furnishing of information
54. Approval of special resolutions, amalgamation and transfer of assets and liabilities
[heading of section 54 amended by Act 14 of 2010]55. Undesirable practices
55A. Pyramid Schemes
56. Powers of the Bank regarding banking institutions
57. Additional powers of Bank to apply for capital reduction or to acquire shares in a banking institution
58. Winding-up or judicial management
59. Proof and repayment of claims
60. Unclaimed monies or property after winding-up
Part VIII – GENERAL PROVISIONS
61. Agreements restricting competition
62. Prohibition to accept deposits by insolvent banking institutions
63. Insurance against loss due to negligence or dishonesty
A banking institution -64. Confidentiality and secrecy
65. Publication of information
66. International supervisory co-operation
67. Minors as depositors
Notwithstanding anything to the contrary in any law contained, a minor person of 16 years and older, and who has not been declared mentally ill under the Mental Health Act, 1973 (Act 18 of 1973), may open an account and be a depositor with a banking institution and may, without the assistance of his or her parent or guardian, as the case may be, execute all necessary documents, give all necessary receipts or acquittances and may cede, pledge, borrow against, and generally deal with, his or her deposit as he or she may consider appropriate, and shall enjoy all the privileges and be liable to all the obligations and conditions applicable to depositors.68. Exemption of certain transactions from stamp duties
No stamp duty imposed by the Stamp Duties Act, 1993 (Act 15 of 1993) shall be payable in respect of the transfer of shares in a banking institution or any of its subsidiary companies, sold or disposed of in any manner by the banking institution to its controlling company, if such sale or disposal has been approved by the Bank.69. Application of other laws to banking institutions
70. External bureaux
71. Regulations and determinations
72. Offences and penalties
73. Offences by banking institutions, officers or agents
73A. Imposition of administrative fines by Bank
73B. Appeal Board
74. Repeal of laws and savings
75. Short title and commencement
This Act shall be called the Banking Institutions Act, 1998, and shall come into operation on a date to be determined by the Minister by notice in the Gazette.History of this document
08 August 2023
Repealed by
Banking Institutions Act, 2023
20 May 2019 this version
Amended by
Deposit Guarantee Act, 2018
01 April 2011
05 November 2010
Amended by
Banking Institutions Amendment Act, 2010
01 April 1998
Commenced by
Commencement of the Banking Institutions Act, 1998
09 March 1998
20 February 1998
Assented to
Cited documents 33
Act 33
1. | Criminal Procedure Act, 1977 | 1937 citations |
2. | High Court Act, 1990 | 1122 citations |
3. | Insolvency Act, 1936 | 729 citations |
4. | Legal Practitioners Act, 1995 | 249 citations |
5. | Public Accountants’ and Auditors’ Act, 1951 | 200 citations |
6. | Deeds Registries Act, 1937 | 144 citations |
7. | Building Societies Act, 1986 | 102 citations |
8. | Mental Health Act, 1973 | 94 citations |
9. | Namibia Financial Institutions Supervisory Authority Act, 2001 | 81 citations |
10. | Public Holidays Act, 1990 | 76 citations |
Documents citing this one 224
Gazette 147
Act 46
1. | Criminal Procedure Act, 1977 | 1937 citations |
2. | Local Authorities Act, 1992 | 1327 citations |
3. | Companies Act, 2004 | 444 citations |
4. | Regional Councils Act, 1992 | 389 citations |
5. | Prevention of Organised Crime Act, 2004 | 359 citations |
6. | Agricultural (Commercial) Land Reform Act, 1995 | 255 citations |
7. | Income Tax Act, 1981 | 244 citations |
8. | Competition Act, 2003 | 178 citations |
9. | Electoral Act, 2014 | 174 citations |
10. | Standards Act, 2005 | 112 citations |
Judgment 23
Government Notice 4
Law Reform Report 2
1. | Discussion Paper on Issues relating to the Insolvency Act, 1936 | |
2. | Report on Marital Property |
Discussion Paper 1
1. | Discussion Document on Consumer Protection |
General Notice 1
1. | Determination on policy changes in response to economic and financial stability challenges, following the fallout of the COVID-19 Pandemic (BID-33) |
Subsidiary legislation
Title
|
Date
|
|
---|---|---|
COVID-19 Relief Measures (BID-33) | General Notice 162 of 2023 | 4 April 2023 |
COVID-19 Relief Measures (BID-33)
Repealed
|
General Notice 668 of 2022 | 16 November 2022 |
Determination on Policy Changes in Response to Economic and Financial Stability Challenges as a Result of the COVID-19 Pandemic (BID-33).
Repealed
|
General Notice 590 of 2021 | 20 October 2021 |
Determination on policy changes in response to economic and financial stability challenges, following the fallout of the COVID-19 Pandemic (BID-33)
Repealed
|
General Notice 127 of 2020 | 1 April 2020 |
Amendment of Regulations Relating to Fees Payable to Bank of Namibia: Banking Institutions Act, 1998 | Government Notice 323 of 2017 | 15 December 2017 |
Regulations relating to Fees payable to Bank of Namibia, 2009 | Government Notice 234 of 2009 | 15 December 2017 |
Regulations relating to Restrictions on loan-to-value ratios, 2016 | Government Notice 229 of 2016 | 15 November 2017 |