This
Act was passed in the first quarter of 2016 but has not yet
become effective. It is a lengthy Act with a number of separate and
detailed statutory mechanisms which work in conjunction with one
another. The purpose of the Act is to address a situation where all
or part of a bank's business encounters financial difficulty or
is likely to encounter such difficulty. The Act seeks to provide a
mechanism for enabling the orderly transfer of the assets of a
distressed bank, and the protection of deposit holders'
interests in keeping with international standards.
The Act entails an initial rescue or stabilisation phase, an
insolvency phase and an administration phase. The Regulator is
granted wide powers to deal with claims, dispose of assets and
override strict legal priorities in order to maximize the
preservation of value and recovery of assets. The purpose of the
regime is to be able to stabilize a distressed bank by taking it
into public ownership, transfer
