Related documents
- Is commenced by Banking Institutions Act, 2023: Commencement
- Repeals Banking Institutions Act, 1998
- Repeals Banking Institutions Amendment Act, 2010

Banking Institutions Act, 2023
Act 13 of 2023
- Published in Government Gazette 8155 on 27 July 2023
- Assented to on 19 July 2023
- Commenced on 8 August 2023 by Banking Institutions Act, 2023: Commencement
- [This is the version of this document from 27 July 2023 and includes any amendments published up to 11 April 2025.]
Part 1 – PRELIMINARY PROVISIONS
1. Definitions and interpretation
2. Limitation of rights and non-application of Act
Part 2 – ADMINISTRATION OF ACT
3. Guidelines, circulars or notices by Bank
4. Limitation of liability
5. Delegation of powers and assignment of functions
Part 3 – AUTHORISATION TO ESTABLISH BANKING INSTITUTION OR MICROFINANCE BANKING INSTITUTION
6. Prohibition on conducting of banking business or microfinance banking business by unauthorised persons
7. Investigations
8. Repayment of monies by unauthorised persons
9. Name of banking institution or microfinance banking institution
10. Prerequisite for conducting banking or microfinance banking business
11. Application for authorisation to conduct banking or microfinance banking business
12. Grant or refusal of application and provisional authorisation
13. Authorisation to conduct banking business or microfinance banking business and certificate of authorisation
14. Duration and conditions of authorisation
15. Cancellation of authorisation
16. Repayment of deposits upon cancellation of authorisation
17. Application for registration as controlling company
18. Grant or refusal of application for registration as controlling company
19. Cancellation of registration as controlling company
20. Investments by controlling company
21. Restructuring within group of companies
22. Annual fees
23. Subsidiaries, branch offices, representative offices and other interests of banking institutions, microfinance banking institutions or controlling companies
24. Publication of information relating to banking institutions and microfinance banking institutions
The Bank, by notice in the Gazette and any other means that the Bank considers appropriate—25. Representative offices of foreign banking institutions
26. Branches of foreign banking institutions
27. Application of other provisions of Act to branches of foreign banking institutions
Part 4 – SHAREHOLDING IN BANKING INSTITUTIONS, MICROFINANCE BANKING INSTITUTIONS AND CONTROLLING COMPANIES
28. Restriction on shareholding in banking institutions, microfinance banking institutions and controlling companies
29. Shareholder’s register and registration of shares
30. Furnishing of information by shareholders
31. Absence of wrongful intent
If a banking institution, microfinance banking institution or controlling company or any director, officer, employee or agent of the banking institution, microfinance banking institution or controlling company, on the strength of information or particulars reasonably obtained by it or him or her in good faith and without wrongful intent, acts or fails to act, as result of which the banking institution, microfinance banking institution or controlling company commits the offences specified in section 28(11), 29(9) or 34(13), that act or failure to act does not constitute the commission of any of those offences.32. Effects of registration of shares contrary to Act
33. Restriction on right to control banking institution or microfinance banking institution
34. Restriction on foreign shareholding in banking institutions and microfinance banking institutions
35. Preliminary orders prohibiting certain things
36. Effect of compliance with and enforcement of preliminary order
Part 5 – RECOVERY PLANS AND PRUDENTIAL REQUIREMENTS AND LIMITATIONS
37. Recovery plans
38. Standards of corporate behaviour
39. Minimum capital funds
40. Minimum capital funds in respect of banking group
41. Composition of capital funds
For the purposes of section 39, the Bank may determine the composition and proportions of the different classes of capital constituting capital funds in that section and other requirements and criteria of approval of such capital funds.42. Provision to be made for certain matters
43. Minimum liquid assets
44. Restrictions on dividends
45. Minimum local assets
46. Large exposures and concentrations of credit
47. Lending against own shares or debt instruments
48. Exposure to directors, executive officers or shareholders
49. Terms of exposure to directors, executive 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 borrowing from a banking institution, microfinance banking institution or controlling company by directors, executive officers and shareholders of the banking institution, microfinance banking institution or controlling company concerned.50. Exposure to holding companies, subsidiaries and affiliates
51. Restriction on commercial activities
52. Limitations on investment in property
Part 6 – DIRECTORS, PRINCIPAL OFFICERS AND AUDITORS
53. Directors, principal officers and executive officers of banking institutions and microfinance banking institutions
54. Functions, duties and obligations of directors, principal officers and other officers
55. Audit committee
56. Appointment of auditor
57. Disqualifications for appointment as auditor
A person does not qualify to be appointed or to act as an auditor of a banking institution, microfinance banking institution or controlling company, if—58. Duties and functions of auditor
Part 7 – SUPERVISION BY BANK
59. Financial and other banking records
60. Financial statements
61. Disclosure of paid-up share capital
62. Furnishing of certain statements, notices, returns and information
63. Reporting of certain transactions by banking institutions and microfinance banking institutions
64. Extension of time
If a banking institution, microfinance 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, microfinance banking institution or controlling company, in writing extend the period of time specified for the furnishing of the information or document.65. Examination by Bank
66. Production of records and furnishing of information
67. Approval of special resolutions, amalgamations and transfer of assets and liabilities
68. Undesirable practices
69. Powers of Bank regarding banking institutions, microfinance banking institutions and controlling companies
70. Resolution powers of Bank regarding failing banking institutions, microfinance banking institutions and controlling companies
71. Winding-up and judicial management
72. Proof and repayment of claims
73. Cancellation of authorisation upon winding-up
When the affairs of a banking institution, microfinance banking institution or controlling company have been completely wound-up in terms of section 425 of the Companies Act—74. Unclaimed money or property after winding-up
Part 8 – ILLEGAL FINANCIAL SCHEMES
75. Definitions for this Part
76. Meaning of illegal financial scheme
77. Participation in illegal financial scheme prohibited
A person who intentionally, knowingly or without having taken reasonable steps to ascertain the lawfulness or otherwise of any activity—78. Determination of illegal financial schemes
79. Bank may issue public warning notice
80. Repayment of money obtained in contravention of this Part
81. Power of entry and investigation
Part 9 – MISCELLANEOUS MATTERS
82. Agreements restricting competition
83. Prohibition on acceptance of deposits by insolvent banking institution and microfinance banking institution
84. Insurance against loss due to negligence or dishonesty
A banking institution or microfinance banking institution—85. Confidentiality and secrecy
86. Publication of information
87. International supervisory co-operation
88. Minors as depositors
Despite anything to the contrary in this Act or in any law, a minor person aged 16 years and older, and who has not been declared mentally ill under the Mental Health Act, 1973 (Act No. 18 of 1973)—89. Exemption of certain transactions from stamp duties and transfer duties
90. Application of other laws to banking institutions and microfinance banking institutions
91. Application for approvals or authorisations not provided for in Act
92. Penalties for general offences
93. Penalties for offences by banking institutions, microfinance banking institutions or controlling companies, officers, employees or agents
94. Imposition of administrative fines by Bank
Part 10 – APPEAL BOARD
95. Appeal Board
96. Disqualification for appointment as member
A person does not qualify for appointment as a member of the Appeal Board if that person—97. Term of office
A member of the Appeal Board holds office for a period of three years, and at the expiration of that period is eligible for re-appointment.98. Vacation of office
99. Remuneration
100. Administration
The Minister must make arrangements for the performance of the administrative and clerical work of the Appeal Board, including the designation or appointment of a secretary and other support staff, the cost of which forms part of the budget referred to in section 95(6).101. Right of appeal
102. Summoning of witnesses and giving of evidence
103. Decision of Appeal Board
104. Decision not suspended
An appeal lodged with the Appeal Board under this Part does not suspend a decision of the Bank referred to in section 101(1), unless the Appeal Board upon application directs otherwise.105. Rights not limited
This Act must not be construed so as to limit the right of any interested person to appeal against or have a decision of the Appeal Board reviewed by a court, subject to the obligation of such person first to have exhausted all available remedies under this Act.Part 11 – GENERAL PROVISIONS
106. Authorised officers
107. Regulation of fees and charges by banking institutions and microfinance banking institutions
108. Regulations and determinations
109. Repeal of laws and savings
110. Short title and commencement
History of this document
08 August 2023
Commenced by
Banking Institutions Act, 2023: Commencement
27 July 2023 this version
19 July 2023
Assented to
Cited documents 31
Act 31
1. | Criminal Procedure Act, 1977 | 1966 citations |
2. | Insolvency Act, 1936 | 737 citations |
3. | Companies Act, 2004 | 467 citations |
4. | Prevention of Organised Crime Act, 2004 | 376 citations |
5. | Immigration Control Act, 1993 | 263 citations |
6. | Legal Practitioners Act, 1995 | 256 citations |
7. | Banking Institutions Act, 1998 | 224 citations |
8. | Public Accountants’ and Auditors’ Act, 1951 | 204 citations |
9. | Competition Act, 2003 | 182 citations |
10. | Deeds Registries Act, 1937 | 151 citations |
Documents citing this one 24
Gazette 19
Act 4
1. | Income Tax Act, 1981 | 245 citations |
2. | Payment System Management Act, 2023 | 9 citations |
3. | Health Professions Act, 2024 | 3 citations |
4. | Property Practitioners Act, 2024 | 1 citation |
Government Notice 1
1. | Regulations relating to Restrictions on Loan-to-Value Ratios |
Subsidiary legislation
Title
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Regulations relating to Restrictions on Loan-to-Value Ratios | Government Notice 342 of 2023 |