Fifth Schedule, Banking Act 1970

Sections 27(4), 28(8), 29(7), 38(9) and 77A DEFINITIONS IN SECTIONS 27, 28, 29, 29A, 38 AND 39A 1. For the purposes of sections 27, 28 and 29 and this Schedule — “affiliate” means — (a) in relation to a substantial shareholder of a bank incorporated in Singapore, any corporation which is an associate of the substantial shareholder, other than — (i) the bank and any entity in which the bank acquires or holds, directly or indirectly, a major stake; (ii) the parent bank of the bank and any entity in which the parent bank acquires or holds, directly or indirectly, a major stake; or (iii) where the bank is the subsidiary of a financial holding company, the financial holding company and any entity in which the financial holding company acquires or holds, directly or indirectly, a major stake; (b) in relation to a substantial shareholder of a financial holding company, any corporation which is an associate of the substantial shareholder, other than — Banking Act 19702020 Ed. 238 (i) the financial holding company and any entity in which the financial holding company acquires or holds, directly or indirectly, a major stake; or (ii) where the financial holding company is the subsidiary of another financial holding company, the second‑mentioned financial holding company and any entity in which the second-mentioned holding company acquires or holds, directly or indirectly, a major stake; and (c) in relation to a substantial shareholder of a parent bank, any corporation which is an associate of the substantial shareholder, other than the parent bank and any entity in which the parent bank acquires or holds, directly or indirectly, a major stake; “associate”, in relation to a substantial shareholder, means — (a) any corporation in which the substantial shareholder controls the composition of the board of directors; (b) any corporation in which the substantial shareholder controls more than half of the voting power; (c) any corporation in which the substantial shareholder holds more than half of the total number of issued shares; (d) any corporation which is a subsidiary of any other corporation which is an associate by virtue of paragraph (a), (b) or (c); (e) any corporation in which the substantial shareholder or any other corporation which is an associate by virtue of paragraph (a), (b), (c) or (d) has, or the substantial shareholder and such other corporation together have, an interest in shares entitling the beneficial owners thereof the right to cast, whether by proxy or in person, not less than 20% but not more than 50% of the total votes able to be cast at a general meeting of the firstmentioned corporation; or (f) any corporation (not being a corporation which is an associate by virtue of paragraph (a), (b), (c), (d) or (e)) the policies of which the substantial shareholder or any other corporation which is an associate by virtue of paragraph (a), (b), (c), (d) or (e) is, or the substantial shareholder together with such other corporation are, able to control or influence materially; “bank group”, in relation to a bank in Singapore, means a group comprising — Banking Act 1970239 2020 Ed. (a) in the case of a bank incorporated in Singapore — (i) every subsidiary of the bank; (ii) every branch of the bank located outside Singapore; (iii) every other entity that is treated as part of the bank’s group of entities for accounting purposes according to Accounting Standards; or (b) in the case of branches and offices located within Singapore of a bank incorporated outside Singapore — (i) every subsidiary of the bank that is reflected as an investment in the balance sheet of a branch of the bank located within Singapore; and (ii) every other entity that — (A) is treated as part of the bank’s group of entities for accounting purposes according to Accounting Standards; and (B) is reflected as an investment in the balance sheet of a branch of the bank located within “child” includes a stepchild and a child who has been de facto adopted by the person in question, whether or not such adoption has been registered in accordance with the provisions of any written law; “counterparty”, in relation to a bank, means a person — (a) who has an obligation to the bank as a result of the bank’s contractual or other arrangements; or (b) in relation to whom the bank is at risk as a result of the bank’s contractual or other arrangements or investments; “director”, in relation to a bank in Singapore, includes the spouse, parent and child of a director of the bank; “director group”, in relation to a bank in Singapore, means a group of persons comprising — (a) any director of the bank; (b) every firm or limited liability partnership in which the director is a partner, a manager, an agent, a guarantor or a surety; Banking Act 19702020 Ed. 240 (c) every individual of whom, and every company of which, the director is a guarantor or surety; and (d) every company in which the director — (i) is an executive officer; (ii) owns more than half of the total number of issued shares, whether legally or beneficially; (iii) controls more than half of the voting power; or (iv) controls the composition of the board of directors; “exposure” means the maximum loss that a bank may incur as a result of the failure of a counterparty to meet any of its obligations; “family member”, in relation to an individual, means the individual’s spouse, parent or child; “key credit approver”, in relation to a bank in Singapore, means — (a) in the case of a bank incorporated in Singapore, any person who, whether alone or jointly with any other person or persons, has the highest level of authority to approve credit facilities that will be reflected in the balance sheet or profit and loss accounts of the bank incorporated in Singapore or any branch or entity in its bank group; and (b) in the case of branches and offices located within Singapore of a bank incorporated outside Singapore, any person who — (i) whether alone or jointly with any other person or persons, has the highest level of authority to approve credit facilities that will be reflected in the balance sheet or profit and loss accounts of any branch of the bank located within Singapore or any branch or entity in the bank group of the branches and offices located within Singapore of the bank incorporated outside Singapore; and (ii) takes part in the operations of the branches located within Singapore of the bank on a day to day basis; “key credit approver group”, in relation to a bank in Singapore, means a group comprising — (a) any key credit approver of the bank; (b) any family member of a key credit approver of the bank; Banking Act 1970241 2020 Ed. (c) any firm or limited liability partnership in or for which a key credit approver of the bank, or a family member of a key credit approver of the bank, is a partner, a manager, an agent, a (d) any individual for whom a key credit approver of the bank, or a family member of a key credit approver of the bank, is a (e) any company for which a key credit approver of the bank, or a family member of a key credit approver of the bank, is a (f) any company of which a key credit approver of the bank, or a family member of a key credit approver of the bank, is an executive officer; (g) any company in which a key credit approver of the bank, or a family member of a key credit approver of the bank, owns more than half of the total number of issued shares, whether legally or beneficially; (h) any company in which a key credit approver of the bank, or a family member of a key credit approver of the bank, controls more than half of the voting power; or (i) any company the composition of the board of directors of which is controlled by a key credit approver of the bank, or a family member of a key credit approver of the bank; “major stake” has the meaning given by section 32(7); “major stake entity group”, in relation to a bank in Singapore, means a group comprising — (a) in the case of a bank incorporated in Singapore, any entity in which the bank holds, directly or indirectly, a major stake; and (b) in the case of branches and offices located within Singapore of a bank incorporated outside Singapore, any entity in which the bank incorporated outside Singapore holds, directly or indirectly, a major stake that is reflected as an investment in the balance sheet in Singapore of the bank; “parent bank”, in relation to a bank, means a bank incorporated in or outside Singapore of which the firstmentioned bank is a subsidiary; “related corporation group”, in relation to a bank in Singapore, means a group comprising — Banking Act 19702020 Ed. 242 (a) any related corporation of the bank; (b) any branch of the bank located outside Singapore; and (c) in the case of a bank incorporated outside Singapore, the head office of the bank incorporated outside Singapore; “senior management group”, in relation to a bank in Singapore, means a group comprising — (a) any executive officer of the bank; (b) any family member of an executive officer of the bank; (c) any firm or limited liability partnership in or for which an executive officer of the bank, or a family member of an executive officer of the bank, is a partner, a manager, an agent, a (d) any individual for whom an executive officer of the bank, or a family member of an executive officer of the bank, is a (e) any company for which an executive officer of the bank, or a family member of an executive officer of the bank, is a (f) any company of which an executive officer of the bank, or a family member of an executive officer of the bank, is an executive officer; (g) any company in which an executive officer of the bank, or a family member of an executive officer of the bank, owns more than half of the total number of issued shares, whether legally or beneficially; (h) any company in which an executive officer of the bank, or a family member of an executive officer of the bank, controls more than half of the voting power; or (i) any company the composition of the board of directors of which is controlled by an executive officer of the bank, or a family member of an executive officer of the bank; “substantial shareholder group”, in relation to a bank incorporated in Singapore, means a group of persons comprising — (a) any substantial shareholder of the bank; (b) every affiliate of the substantial shareholder of the bank; and Banking Act 1970243 2020 Ed. (c) where the bank is a subsidiary of a financial holding company or a parent bank — (i) any substantial shareholder of the financial holding company or the parent bank; and (ii) every affiliate of the substantial shareholder mentioned in sub‑paragraph (i); “transaction” means any type of transaction including (but not limited to) any contract, agreement and arrangement and any transaction forming part of a contract, agreement or arrangement, and includes a write‑off of a debt, loan or any other similar arrangement. 2. For the purposes of the definitions of “associate” and “substantial shareholder group”, a reference to a substantial shareholder, where the substantial shareholder is an individual, includes a reference to a family member of the substantial shareholder. 3. For the purposes of the definition of “associate”, a substantial shareholder is deemed to control the composition of the board of directors of a corporation if the substantial shareholder has any power, exercisable by the substantial shareholder without the consent or concurrence of any other person, to appoint or remove all or a majority of the directors of the corporation. 4. For the purposes of the definition of “director group”, a director of a bank is deemed to control the composition of the board of directors of a company if the director has any power, exercisable by the director without the consent or concurrence of any other person, to appoint or remove all or a majority of the directors of the company. 5. For the purposes of the definition of “key credit approver group”, a key credit approver (X) of a bank is deemed to control the composition of the board of directors of a company if X has any power, exercisable by X without the consent or concurrence of any other person, to appoint or remove all or a majority of the directors of the company. 5A. For the purposes of the definition of “senior management group”, an executive officer of a bank is deemed to control the composition of the board of directors of a company if he or she has any power, exercisable by him or her without the consent or concurrence of any other person, to appoint or remove all or a majority of the directors of the company. 6. For the purposes of sections 38 and 39A, “liquidity stress situation” means a situation where a bank, having exhausted all reasonable sources or avenues for obtaining funds, is unable to meet its obligations, as and when they fall due, without incurring significant costs or losses. Banking Act 19702020 Ed. 244 7. In this Schedule, unless the context otherwise requires — (a) a reference to an entity is a reference to any body corporate or unincorporate, whether incorporated, formed or established in or outside Singapore; and (b) a reference to an entity in which another entity acquires or holds, directly or indirectly, a major stake is a reference to an entity in which the other entity has a major stake as defined in section 32(7). Banking Act 1970245 2020 Ed. LEGISLATIVE HISTORY BANKING ACT 1970 This Legislative History is a service provided by the Law Revision Commission on a best-efforts basis. It is not part of the Act. 1. Act 41 of 1970 — Banking Act 1970 Date of First Reading : 22 July 1970 (Bill No. 29/70 published on 28 July 1970) : 2 September 1970 Date of commencement : 1 January 1971 2. 1970 Revised Edition — Banking Act (Cap. 182) Date of operation : 1 July 1971 3. Act 6 of 1983 — Banking (Amendment) Act 1983 Date of First Reading : 3 December 1982 (Bill No. 22/82 published on 8 December 1982) : 4 March 1983 Date of commencement : 22 April 1983 4. Act 2 of 1984 — Banking (Amendment) Act 1984 Date of First Reading : 20 December 1983 (Bill No. 15/83 published on 27 December 1983) : 17 January 1984 Date of commencement : 9 March 1984 5. 1985 Revised Edition — Banking Act Date of operation : 30 March 1987 6. Act 16 of 1993 — Supreme Court of Judicature (Amendment) Act 1993 Date of First Reading : 26 February 1993 (Bill No. 12/93 published on 27 February 1993) : 12 April 1993 Date of commencement : 1 July 1993 7. Act 28 of 1993 — Banking (Amendment) Act 1993 Date of First Reading : 30 July 1993 (Bill No. 22/93 published on 31 July 1993) : 30 August 1993 Date of commencement : 8 October 1993 8. 1994 Revised Edition — Banking Act Date of operation : 15 March 1994 9. Act 21 of 1996 — Banking (Amendment) Act 1996 Date of First Reading : 2 May 1996 (Bill No. 12/96 published on 3 May 1996) : 21 May 1996 Date of commencement : 18 July 1996 10. Act 27 of 1998 — Banking (Amendment) Act 1998 Date of First Reading : 1 June 1998 (Bill No. 20/98 published on 2 June 1998) : 29 June 1998 Date of commencement : 10 July 1998 11. Act 37 of 1998 — Post Office Savings Bank of Singapore (Transfer of Undertakings and Dissolution) Act 1998 Date of First Reading : 31 July 1998 (Bill No. 34/98 published on 1 August 1998) : 12 October 1998 Date of commencement : 16 November 1998 ii 12. Act 25 of 1999 — Drug Trafficking (Confiscation of Benefits) (Amendment) Act 1999 Date of First Reading : 4 May 1999 (Bill No. 16/99 published on 5 May 1999) : 6 July 1999 Date of commencement : 13 September 1999 13. 1999 Revised Edition — Banking Act Date of operation : 30 December 1999 14. Act 23 of 2001 — Banking (Amendment) Act 2001 Date of First Reading : 19 April 2001 (Bill No. 21/2001 published on 20 April 2001) : 16 May 2001 Date of commencement : 18 July 2001 15. Act 42 of 2001 — Securities and Futures Act 2001 Date of First Reading : 25 September 2001 (Bill No. 33/2001 published on 26 September 2001) : 5 October 2001 Date of commencement : 1 July 2002 (Item (1)(a) of Fourth Schedule) 1 October 2002 (Item (1)(b) of Fourth Schedule) 16. Act 39 of 2002 — Payment and Settlement Systems (Finality and Netting) Act 2002 Date of First Reading : 31 October 2002 (Bill No. 41/2002 published on 1 November 2002) iii : 25 November 2002 Date of commencement : 9 December 2002 17. 2003 Revised Edition — Banking Act Date of operation : 31 July 2003 18. Act 24 of 2003 — Monetary Authority of Singapore (Amendment) Act Date of First Reading : 16 October 2003 (Bill No. 21/2003 published on 17 October 2003) : 10 November 2003 Date of commencement : 1 January 2004 19. Act 5 of 2004 — Companies (Amendment) Act 2004 Date of First Reading : 5 January 2004 (Bill No. 3/2004 published on 6 January 2004) : 6 February 2004 Date of commencement : 1 April 2004 20. Act 5 of 2005 — Limited Liability Partnerships Act 2005 Date of First Reading : 19 October 2004 (Bill No. 64/2004 published on 20 October 2004) : 25 January 2005 Date of commencement : 11 April 2005 21. Act 31 of 2005 — Deposit Insurance Act 2005 Date of First Reading : 15 August 2005 (Bill No. 21/2005 published on 16 August 2005) iv : 19 September 2005 Date of commencement : 18 October 2005 22. Act 21 of 2005 — Companies (Amendment) Act 2005 Date of First Reading : 18 April 2005 (Bill No. 11/2005 published on 19 April 2005) : 16 May 2005 Date of commencement : 30 January 2006 23. Act 42 of 2005 — Statutes (Miscellaneous Amendments) (No. 2) Act 2005 Date of First Reading : 17 October 2005 (Bill No. 30/2005 published on 18 October 2005) : 21 November 2005 Date of commencement : 1 April 2006 (Item (2) of First Schedule — Amendment of Banking Act) 24. Act 1 of 2006 — Payment Systems (Oversight) Act 2006 Date of First Reading : 21 November 2005 (Bill No. 39/2005 published on 22 November 2005) : 16 January 2006 Date of commencement : 23 June 2006 25. Act 1 of 2007 — Banking (Amendment) Act 2007 Date of First Reading : 8 November 2006 (Bill No. 13/2006 published on 9 November 2006) : 22 January 2007 Date of commencement : 31 March 2007 v 26. 2008 Revised Edition — Banking Act Date of operation : 31 March 2008 27. Act 23 of 2008 — Co-operative Societies (Amendment) Act 2008 Date of First Reading : 25 August 2008 (Bill No. 19/2008 published on 26 August 2008) : 16 September 2008 Date of commencement : 20 October 2008 28. Act 5 of 2010 — Moneylenders (Amendment) Act 2010 Date of First Reading : 23 November 2009 (Bill No. 23/2009 published on 23 November 2009) : 12 January 2010 Date of commencement : 11 February 2010 29. Act 19 of 2010 — Hostage-Taking Act 2010 Date of First Reading : 19 July 2010 (Bill No. 13/2010 published on 19 July 2010) : 16 August 2010 Date of commencement : 21 November 2010 30. Act 15 of 2010 — Criminal Procedure Code 2010 Date of First Reading : 26 April 2010 (Bill No. 11/2010 published on 26 April 2010) : 19 May 2010 Date of commencement : 2 January 2011 vi 31. Act 15 of 2011 — Deposit Insurance and Policy Owners’ Protection Schemes Act 2011 Date of First Reading : 10 March 2011 (Bill No. 10/2011 published on 10 March 2011) : 11 April 2011 Date of commencement : 1 May 2011 32. Act 10 of 2013 — Financial Institutions (Miscellaneous Amendments) Act Date of First Reading : 4 February 2013 (Bill No. 4/2013 published on 4 February 2013) : 15 March 2013 Date of commencement : 18 April 2013 (Section 2 — Amendment to Banking Act) 33. Act 11 of 2013 — Insurance (Amendment) Act 2013 Date of First Reading : 4 February 2013 (Bill No. 5/2013 published on 4 February 2013) : 15 March 2013 Date of commencement : 18 April 2013 34. Act 26 of 2012 — Personal Data Protection Act 2012 Date of First Reading : 10 September 2012 (Bill No. 24/2012 published on 10 September 2012) : 15 October 2012 Date of commencement : 2 January 2014 (Section 67(1)) vii 35. Act 2 of 2015 — Pawnbrokers Act 2015 Date of First Reading : 4 November 2014 (Bill No. 42/2014 published on 4 November 2014) : 19 January 2015 Date of commencement : 1 April 2015 36. Act 35 of 2014 — Statutes (Miscellaneous Amendments) (No. 2) Act 2014 Date of First Reading : 8 September 2014 (Bill No. 24/2014 published on 8 September 2014) : 7 October 2014 Date of commencement : 1 July 2015 37. Act 31 of 2017 — Monetary Authority of Singapore (Amendment) Act Date of First Reading : 8 May 2017 (Bill No. 25/2017) : 4 July 2017 Date of commencement : 4 June 2018 5 June 2018 29 October 2018 38. Act 4 of 2017 — Securities and Futures (Amendment) Act 2017 Date of First Reading : 7 November 2016 (Bill No. 35/2016) : 9 January 2017 Date of commencement : 8 October 2018 39. Act 5 of 2016 — Banking (Amendment) Act 2016 Date of First Reading : 25 January 2016 (Bill No. 1/2016 published on 25 January 2016) : 29 February 2016 Date of commencement : 30 November 2018 30 June 2022 (Section 12(2)(b)) viii 40. Act 40 of 2018 — Insolvency, Restructuring and Dissolution Act 2018 Date of First Reading : 10 September 2018 (Bill No. 32/2018 published on 10 September 2018) : 1 October 2018 Date of commencement : 30 July 2020 41. Act 1 of 2020 — Banking (Amendment) Act 2020 Date of First Reading : 4 November 2019 (Bill No. 35/2019) : 6 January 2020 Date of commencement : 1 October 2020 1 July 2021 42. Act 40 of 2019 — Supreme Court of Judicature (Amendment) Act 2019 Date of First Reading : 7 October 2019 (Bill No. 32/2019) : 5 November 2019 Date of commencement : 2 January 2021 43. Act 27 of 2016 — Credit Bureau Act 2016 (Amendments made by the above Act) Date of First Reading : 10 October 2016 (Bill No. 27/2016 published on 10 October 2016) Second and Third Readings : 9 November 2016 Date of Commencement : 31 May 2021 44. 2020 Revised Edition — Banking Act 1970 Operation : 31 December 2021 45. G. N. No. S 26/2022 — Variable Capital Companies (Consequential Amendments to Other Acts) Order 2022 Date of commencement : 13 January 2022 46. Act 25 of 2021 — Courts (Civil and Criminal Justice) Reform Act 2021 Date of First Reading : 26 July 2021 (Bill No. 18/2021) ix : 14 September 2021 Date of commencement : 1 April 2022 47. Act 13 of 2013 — Financial Holding Companies Act 2013 Date of First Reading : 4 February 2013 (Bill No. 6/2013) : 8 April 2013 Date of commencement : 30 June 2022 (Section 78) 48. Act 36 of 2022 — Accountancy Functions (Consolidation) Act 2022 (Amendments made by the above Act) Bill : 29/2022 First Reading : 3 October 2022 Second and Third Readings : 9 November 2022 Commencement : 1 April 2023 49. Act 32 of 2022 — Accountants (Amendment) Act 2022 (Amendments made by the above Act) Bill : 25/2022 First Reading : 12 September 2022 Second and Third Readings : 3 October 2022 Commencement : 1 July 2023 50. Act 18 of 2022 — Financial Services and Markets Act 2022 Bill : 4/2022 First Reading : 14 February 2022 Second and Third Readings : 5 April 2022 Commencement : 28 April 2023 (Section 193(1), (2), (3)(a), (b), (4), (5), (7)(a), (b) and (c)) 10 May 2024 (Section 193(3)(c), (7)(d), (9), (10) and (11)) 31 July 2024 (Section 193(6) and (8)) 51. Act 18 of 2023 — Family Justice Reform Act 2023 Bill : 15/2023 First Reading : 20 April 2023 x Second and Third Readings : 12 June 2023 Commencement : 16 January 2025 52. Act 5 of 2025 — Electronic Gazette and Legislation Act 2025 Bill : 47/2024 First Reading : 11 November 2024 Second and Third Readings : 7 January 2025 Commencement : 9 March 2025 53. Act 42 of 2024 — Mutual Assistance in Criminal Matters (Amendment) and Other Matters Act 2024 Bill : 35/2024 First Reading : 14 October 2024 Second and Third Readings : 11 November 2024 Commencement : 20 June 2025 Abbreviations . (updated on 29 August 2022) G.N. Gazette Notification G.N. Sp. Gazette Notification (Special Supplement) L.A. Legislative Assembly L.N. Legal Notification (Federal/Malaysian) M. Malaya/Malaysia (including Federated Malay States, Malayan Union, Federation of Malaya and Federation of Malaysia) Parl. Parliament S Subsidiary Legislation S.I. Statutory Instrument (United Kingdom) S (N.S.) Subsidiary Legislation (New Series) S.S.G.G. Straits Settlements Government Gazette S.S.G.G. (E) Straits Settlements Government Gazette (Extraordinary) xi