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What the draft of the new Banking Act says:

* the central bank would be obliged to set down specific criteria for separate bank licence applications in various fields, e.g. mortgages, construction savings
* the central bank would be obliged to deem an entity 'trustworthy' i.e. suitable for a licence, if it had not previously been fined in excess of 500,000 Slovak crowns in connection with banking operations
* the central bank would be obliged to grant a bank licence only to a 'trustworthy' entity

* the central bank would be obliged to set down specific criteria for separate bank licence applications in various fields, e.g. mortgages, construction savings

* the central bank would be obliged to deem an entity 'trustworthy' i.e. suitable for a licence, if it had not previously been fined in excess of 500,000 Slovak crowns in connection with banking operations

* the central bank would be obliged to grant a bank licence only to a 'trustworthy' entity

* a bank has to ask for NBS approval before it can replace statutory body members and the supervisory board, bank officers, head of internal control and internal audit departments

* a bank must have its internal control and internal audit department evaluate new types of transactions

* members of a bank's statutory body must ensure the safety and soundness of the bank, as well as conduct that does not endanger capital adequacy or liquidity, and follow prudent business activities

* a member of a statutory body will be fully responsible for damage caused while acting in his capacity

* a bank may not carry out legal acts at its own expense in favour of statutory body members

* a bank must keep a capital adequacy of at least 8%

* The NBS will challenge a bank to adopt recovery measures when its capital adequacy falls below 8%

* The NBS will introduce forced administration when the bank's capital adequacy falls below 4%

* The NBS will withdraw a licence when the bank's capital adequacy falls below 2%

* a bank must publish quarterly information about its activities and any corrections it has to make to such reports without delay (before the reports were annual)

* an auditor to inform the NBS immediately about violations of laws, a bank's over-indebtedness, and untrue, incorrect or incomplete financial statements.

* The NBS may hand down a fine of 1,000,000 Slovak crowns to a member of the statutory body and bank officers for violation of this Act

* Banks, branch offices of foreign banks and other entities shall be obliged to adjust to comply with this Act not later than within six months after this Act becomes effective.

Source: Draft Banking Law adopted by National Council of the Slovak Republic

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