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16 1989

CENTRAL BANK ACT, 1989

Chapter V

Deposit Protection

Interpretation ( Chapter V ).

53. —In this Chapter—

child” includes a person of full age;

connected person” in relation to another person, means a person maintaining deposits (including deposits, if any, on current accounts) with the holder or former holder of a licence which has become insolvent and is being wound up and where the person is—

(a) the spouse of that other person,

(b) the child or grandchild of that other person or the child or grandchild of the spouse of that other person,

(c) the parent or grandparent of that other person,

(d) the brother, sister, stepbrother or stepsister of that other person,

(e) a partner of that other person to whom, together, the Partnership Act, 1890, applies (whether or not with any other persons),

(f) the spouse of a connected person to whom paragraph (b), (d) or (e) applies and in relation to the appropriate other person to whom the relevant paragraph relates,

(g) a body corporate and that other person is a chief officer, secretary or member of any board or other committee of management, by whatever name called, of the body corporate,

(h) a body corporate and that other person is a relevant beneficial owner of the body corporate, or

(i) a body corporate and that person is, together with any person to whom paragraph (a), (b), (c), (d), (e), (f) or (g) applies, a relevant beneficial owner of the body corporate;

deposit protection account” means the account established and maintained by virtue of section 54 ;

eligible deposits” has the meaning assigned to it by section 62 ;

excluded depositor” means a person maintaining deposits (including deposits, if any, on current accounts) with the holder or former holder of a licence which has become insolvent and is being wound up and, in relation to that holder or former holder of the licence where the person is—

(a) a chief officer, secretary or member of any board or other committee of management, by whatever name called,

(b) a relevant beneficial owner of that holder or former holder of the licence,

(c) together with connected persons, a relevant beneficial owner of that holder or former holder of the licence,

(d) subject to section 64 , a connected person to a person specified in paragraph (a), (b) or (c),

(e) subject to section 64 , a trustee of a trust for the benefit of a person specified in paragraph (a), (b), (c) or (d),

(f) a holding company, a subsidiary company, another subsidiary company of the same holding company or a company (not being a subsidiary company) in respect of which the holder or former holder is a relevant beneficial owner, or

(g) a person excluded by virtue of section 63 ;

interbank deposits” means deposits with a holder of a licence by any of the following, that is to say—

(a) another holder of a licence;

(b) any person, not being the holder of a licence, established outside the State who, in the opinion of the Bank, is duly authorised outside the State to carry on the business of banking;

(c) the Bank;

(d) the Agricultural Credit Corporation public limited company;

(e) the company formed and registered by virtue of section 2 of the Industrial Credit Act, 1933 ;

(f) a trustee savings bank certified under the Trustee Savings Banks Acts, 1863 to 1979;

(g) a building society;

(h) such other persons as may be specified by regulations under section 72 ;

and deposits with the holder of a licence by any of its offices outside the State shall be deemed to be interbank deposits;

relevant beneficial owner”, in relation to a body corporate, means a person who is beneficially entitled (either directly or indirectly) to 20 per cent. or more in nominal value of either the allotted share capital or the shares carrying voting rights (other than voting rights which arise only in specified circumstances) in the body corporate.

Deposit protection account.

54. —The Bank shall establish and maintain in the general fund an account to be known as the deposit protection account.

Deposits by holders of licences.

55. —(1) Upon the establishment of the deposit protection account, the deposit standing maintained with the Bank immediately before the coming into operation of this section by each holder of a licence and calculated in accordance with section 13 of the Act of 1971 shall be transferred to that account in respect of that holder and, accordingly, that section shall cease to have effect upon such coming into operation.

(2) The amount of a deposit maintained by a holder of a licence in the Bank pursuant to section 7 of the Act of 1971 (in this section referred to as the deposit) shall, subject to subsection (5), be 0.2 per cent., or such other proportion as may be specified by regulations under section 72 (2), of the total—

(a) Irish pound deposits (including deposits on current accounts but, subject to paragraph (b), excluding interbank deposits and deposits represented by negotiable certificates of deposit), and

(b) such other deposits as may be specified by regulations under section 72 (2) in respect of all or any class or category of holders of licences,

at offices in the State of the holder, but shall not be less than £20,000 and, accordingly, the reference in the said section 7 to section 13 of the Act of 1971 shall be construed as a reference to this section.

(3) The amount of the deposit shall be calculated by the Bank as soon as is practicable after the coming into operation of this section (in this section referred to as “the relevant date”) or at the time of the issue of the licence as may be appropriate and shall be recalculated in respect of every holder of a licence every 12 months (or as close thereto as is reasonably practicable) after the relevant date by reference to returns made by each holder to the Bank under section 18 of the Act of 1971.

(4) The amount of the deposit shall, where necessary, be increased to the appropriate amount recalculated under subsection (3) by the holder of the licence concerned not later than 7 days, or such longer period as the Bank may agree to in writing, after the date of the receipt by him of notification from the Bank of the amount required to effect the increase.

(5) The Bank may settle the amount of the deposit at the nearest round figure in hundreds of pounds and by rounding up to such a figure where the amount calculated under subsection (2) is divisible in pounds by £50.

(6) The deposit shall carry interest at such a rate or rates and payable in such manner and at such times as may be determined by the Bank from time to time.

(7) Any charge purported to be created on the deposit other than by the Bank shall be void.

(8) The deposit shall not be subject to any form of execution in satisfaction of any claim of, or any judgement, order or decree of any court in the State in favour of, any creditor, otherwise than under and in accordance with the provisions of the Central Bank Acts, 1942 to 1989.

(9) (a) Except with the prior written consent of the Bank, a holder of a licence shall not advertise, cause to be advertised or otherwise represent or cause to be represented the fact (however expressed) that deposits or funds placed with the holder are protected by or through the deposit protection account.

(b) Any person who contravenes paragraph (a) shall be guilty of an offence and shall be liable—

(i) on summary conviction to a fine not exceeding £1,000 or, at the discretion of the court, to imprisonment for a term not exceeding 12 months, or to both, or

(ii) on conviction on indictment to a fine not exceeding £50,000 or, at the discretion of the court, to imprisonment for a term not exceeding 5 years, or to both.

Review of operation of deposit protection account.

56. —The Bank shall keep the operation of the deposit protection account under review and may, if it considers it expedient to do so after having regard to such factors as it considers relevant, from time to time make recommendations to the Minister in relation to all or any of the following, that is to say:

(a) the making of regulations under section 72 (2) for the purposes of section 55 (2);

(b) the making of regulations under section 72 (2) for the purposes of section 62 (1) (b);

(c) the making of an order under section 59 (4) for the purposes set out therein.

Deposit protection account and cesser of banking business where solvent.

57. —(1) Where the holder of a licence or a former holder of a licence ceases to carry on banking business in circumstances other than those provided for by section 58 (1), the Bank may retain the full amount, or such lesser amount as the Bank considers appropriate, of the holder's deposit in the deposit protection account until it is satisfied that all liability of that holder in respect of every person maintaining deposits with him have been or will be discharged in full.

(2) Every payment to which this section relates shall be charged on the deposit protection account in the general fund.

Vesting in liquidator of deposited amount.

58. —(1) Where a holder of a licence or a former holder of a licence is unable to pay his debts and is being wound up, either voluntarily or by the Court, the Court may, on the application of the liquidator concerned, order that the amount standing deposited by the holder or former holder in the deposit protection account shall, together with any interest accrued and interest that may accrue and subject to the other provisions of this Chapter, vest in the liquidator by his official name.

(2) Where, after payment of all eligible deposits, any balance of the amount vested in the liquidator by virtue of subsection (1) remains, it shall be treated for the purposes of the Companies Acts, 1963 to 1986, as an asset of the holder or former holder of the licence (as the case may be) vesting in the liquidator by his official name.

Statement of affairs and calculation of payments from deposit protection account, etc. on insolvency.

59. —(1) This section applies to the holder or former holder of a licence which is unable to pay its debts and is being wound up either voluntarily or by the Court.

(2) The liquidator shall deliver to the Bank within one month of the date of his appointment, or such extended period as the Court may order—

(a) a copy of the statement of the affairs of the holder or former holder made out and filed in accordance with section 224 of the Companies Act, 1963 , or, where the holder is being wound up voluntarily, a statement which would be so filed if the holder or former holder were being wound up by the Court,

(b) an estimate of the amount (excluding any amount in the deposit protection account) likely to be available for the payment of amounts due to persons maintaining deposits, and

(c) a statement of when he expects to be in a position to make those payments.

(3) (a) The amount payable out of the amount vesting in the liquidator in accordance with section 58 to each person maintaining eligible deposits with the holder or former holder concerned shall, subject to paragraph (b), be calculated in accordance with the formula—

/images/en.act.1989.0016.sec59.1.png

where—

A is any amount of eligible deposits up to £5,000,

B is any excess of eligible deposits over £5,000 but not over £10,000,

C is any excess of eligible deposits over £10,000 but not over £15,000, and

D is the amount paid or to be paid to that person in respect of eligible deposits maintained by that person otherwise than out of funds so vesting.

(b) Where the aggregate amount so payable would be greater than the amount vesting in the liquidator in accordance with section 58 then the amount payable to each person concerned shall be calculated in accordance with the formula—

X

___

Y

(

4

___

5

A +

7

___

10

B +

1

___

2

C

)

X

___

Y

D

where A, B, C and D have respectively the same meanings as they have in paragraph (a) and—

X is the amount so vesting, and

Y is the said aggregate amount.

(c) Reference in this subsection or in section 60 to the amount vesting in the liquidator in accordance with section 58 shall be construed as the amount so vesting after the deduction for any remuneration or expenses permitted, by virtue of section 70 (2), to be paid out of the amount so vesting in the liquidator.

(4) Where the Bank has made a recommendation to the Minister in accordance with section 56 in respect of the monetary amounts represented by the letters A, B and C in subsection (3), the Minister may, where he is of the opinion that it would be in the interest of the orderly and proper regulation of banking or the provision of financial services generally, by order amend that subsection by altering those monetary amounts, whether or not previously amended by virtue of this subsection:

Provided that no such amendment shall have any effect in relation to a holder or former holder of a licence which, at the time the relevant provision in the order under this subsection comes into operation, is unable to pay its debts and is being wound up.

Payment out of deposit protection account on winding up.

60. —(1) There shall be paid, out of the amount vesting in a liquidator under section 58 (1), to each person maintaining an eligible deposit with the holder or former holder of the licence concerned—

(a) the amount calculated in accordance with section 59 (3) (a), or

(b) if the amount so vesting is insufficient for such purpose, a proportion of that person's eligible deposits which is calculated in accordance with section 59 (3) (b).

(2) Where the provisions of subsection (1) apply, every person with eligible deposits concerned may, subject to section 61 , claim as an ordinary creditor of the holder or former holder of the licence in respect of so much of those deposits as remains unpaid.

(3) Where it appears to the Bank that the amount available, or likely to become available, to the liquidator concerned (including the amount vesting in the liquidator in accordance with section 58 ) will be insufficient to enable each person maintaining eligible deposits with the holder or former holder to be paid in respect of such deposits—

(a) the amount calculated in accordance with section 59 (3) (a), or

(b) within such period of time as the Bank considers reasonable in the circumstances, the amount so calculated,

then, there shall be provided by the Bank out of the deposit protection account a sum sufficient to pay in respect of each such person—

(i) where paragraph (a) of this subsection applies, the difference between the amounts calculated in accordance with paragraphs (a) and (b) of section 59 (3),

(ii) where paragraph (b) of this subsection applies, the difference between the amount calculated in accordance with paragraph (a) of section 59 (3) and the amount paid or payable by the liquidator within that period of time.

(4) The manner and mode of making payments for the purposes of subsection (1) from the moneys vesting in the liquidator concerned by virtue of section 58 shall be as agreed to between the liquidator and the Bank or, in the event of a disagreement, as the Court shall order on an application by either or both the liquidator and the Bank.

(5) For the purposes of subsections (3) and (4), the Bank shall take all reasonable steps to ensure that payments to which this section relates are paid as expeditiously and with the least expense to the Bank as is possible consistently with the orderly winding up.

(6) Where moneys have been provided by the Bank for the payment of persons maintaining eligible deposits, proof of those payments shall be given to the Bank by the person to whom the moneys were so provided.

(7) Every payment to which this section relates shall be charged on the deposit protection account in the general fund.

Effect of payment by Bank under section 60 .

61. —(1) Where the Bank has made or becomes liable to make a payment under section 60 to persons maintaining eligible deposits, then as regards the amount of the payment in respect of each such person that amount shall be admitted by the Court (or, in the case of a voluntary winding up, by the liquidator) as a proved debt due to the Bank and the Bank shall have the same priority as would be enjoyed by the person were no such amount paid or payable.

(2) In distributing any relevant assets, the liquidator concerned shall pay to the Bank any dividend which would have been payable to a person to whom subsection (1) relates and, accordingly, the person concerned shall not be entitled to such a dividend or any part thereof until the Bank has been paid by the liquidator the full amount paid to that person by the Bank and to which subsection (1) relates.

Eligible deposits.

62. —(1) In this Chapter “eligible deposits”, in relation to every person maintaining deposits (including deposits on current accounts) with the holder or former holder of a licence which is being wound up, means the amount of the total liability of the holder or former holder remaining due to every such person in respect of—

(a) deposits denominated in Irish pounds, and

(b) any deposits denominated otherwise than in Irish pounds as may be specified (either generally or in particular) by regulations under section 72 (2),

at offices in the State of the holder or former holder, together with any interest or other premium accrued thereon up to and including the day of the commencement of the winding up but does not include—

(i) any amount to which subsection (2) relates,

(ii) any deposit maintained by an excluded depositor,

(iii) any deposit which relates to moneys due to the Bank,

(iv) interbank deposits,

(v) deposits represented by negotiable certificates of deposit,

(vi) any deposit which relates to moneys due to any body or category of persons to whom section 7(4) (as amended by this Part) of the Act of 1971 applies, other than a credit union or a friendly society, and

(vii) any deposit to which paragraph (b) relates where the relevant provisions of the regulations concerned came into operation after the commencement of the winding up.

(2) In calculating the amount of an eligible deposit—

(a) there shall be deducted from the total liability of the holder or former holder to the person maintaining a deposit to which subsection (1) relates, the amount of any liability of that person to that holder or former holder in respect of which a right of set-off against the said deposit existed immediately before the commencement of winding up or in respect of which such a right would have existed had—

(i) the said deposit been repayable on demand, and

(ii) such liability fallen due,

immediately before such winding up, and

(b) no account shall be taken of any debt—

(i) of the holder or former holder of the licence concerned unless it has been proved in accordance with sections 283 and 284 of the Companies Act, 1963 , and

(ii) where the holder's licence has been revoked, for any sum deposited by a person with that former holder after such revocation where the Bank is satisfied that, at the time the deposit was made, the person knew or could reasonably be expected to have known that the licence had been revoked.

(3) In this section “commencement of winding up” shall, where appropriate in the circumstances, be construed in accordance with section 220 or 253 of the Companies Act, 1963 .

Certain additional persons to be excluded depositors.

63. —Where the Bank is satisfied that a person maintaining deposits (including deposits, if any, on current accounts) with the holder or former holder of a licence which has become insolvent and is being wound up has directly or indirectly any responsibility for the circumstances giving rise to, or has profited or attempted to profit from, the insolvency, the person shall, unless an excluded depositor by virtue of any other provision of this Chapter, be an excluded depositor by virtue of this section.

Provisions applicable to excluded depositors, etc.

64. —(1) Where the Bank is of the opinion that a person is an excluded depositor by virtue of—

(a) being a connected person to whom paragraph (c) or (d) of the definition of “excluded depositor” in section 53 applies, or

(b) being a trustee of a trust for the benefit of a connected person to whom paragraph (e) of the definition of “excluded depositor” in section 53 applies, or

(c) section 63 ,

or that a person is a person to whom section 62 (2) relates, then the Bank shall, except where subsection (2) (b) of this section applies, give notice in writing to the person of that opinion, the reasons therefor and the steps that may be taken by that person under subsection (2).

(2) (a) A person to whom a notice under subsection (1) has been given in accordance with this section may, within 21 days of being so given, apply to the Court to have the relevant exclusion or deduction to which the notice relates set aside.

(b) Where the Bank is of the opinion that a person is an excluded depositor by virtue of paragraph (a) or (b) of subsection (1) but is satisfied that, in the circumstances, it would be just and equitable to have his exclusion as an eligible depositor set aside, the Bank may apply to the Court to have the exclusion set aside.

(c) Where, on an application under paragraph (a) or (b), the Court is satisfied that, in the circumstances, it would be just and equitable to do so, it shall set aside the exclusion or deduction, as the case may be, but only for the purposes of any relevant deposit maintained by that person.

(3) Notice of any application to the Court under subsection (2) (a) shall be given to the Bank and to the liquidator concerned by the person making the application and notice of any application to the Court under subsection (2) (b) shall be given by the Bank to both the liquidator and the person concerned.

(4) For the purposes of this section, notice shall be duly given by the Bank if the notice is—

(a) sent by prepaid post to the last known address of the person concerned as ascertained by the Bank directly from that person or from the liquidator, or

(b) otherwise given in accordance with any direction of the Court upon application being made to it by the Bank for the purposes of this subsection.

Calculation of certain payments relating to trustee deposits and joint accounts.

65. —(1) Where—

(a) a person maintaining deposits (including, if any, deposits on current accounts) with the holder or former holder of a licence which has become insolvent and is being wound up does so as trustee, and

(b) any beneficiary of the trust concerned is beneficially entitled against the trustees to any identifiable part of that amount, either absolutely or jointly with a fixed number of other beneficiaries,

then, the amount the beneficiary is so entitled to shall be treated, but only for the purpose of ascertaining an appropriate calculation—

(i) where the beneficiary is entitled absolutely, as if it were deposited in a separate account maintained by the beneficiary and legal ownership had passed to the beneficiary,

(ii) where the beneficiary is entitled jointly with a fixed number of other beneficiaries, as if it were deposited in a separate account in the nature of a joint account maintained by the beneficiaries and legal and joint ownership had passed to the beneficiaries concerned.

(2) Where persons (being persons other than trustees or persons to whom subsection (3) applies) maintaining, or treated by virtue of subsection (1) as maintaining, deposits in a joint account (whether a joint deposit account or otherwise with the holder or former holder of a licence which has become insolvent and is being wound up) are entitled to the deposit by virtue of their joint ownership of the moneys on deposit, then they shall each be treated, but only for the purpose of ascertaining an appropriate calculation, as having a separate deposit equal to the amount that would be produced by dividing the moneys concerned by the number of persons to whom the joint account relates.

(3) A deposit to which two or more persons are entitled as members of a partnership (whether or not in equal shares) shall be treated as a single deposit.

(4) The Bank and, where necessary for the purposes of ascertaining an appropriate calculation, the liquidator concerned may require any person maintaining a deposit to which this section may relate to supply sufficient information to enable a determination to be made as to whether the provisions of this section apply to such a deposit.

(5) Where, in a case to which subsection (1) or (2) applies, there are other eligible deposits in relation to the person concerned, those other deposits shall, for the purpose of ascertaining the appropriate calculation, be aggregated with any amount treated as deposits maintained by that person for the purpose of either or both subsection (1) and (2) and the amount so ascertained shall be divided and duly paid to the person concerned and either or both (as the circumstances may require) the trustees concerned and the said person jointly with others, in the same proportion or proportions as the amounts so aggregated bear to each other.

(6) In this section “appropriate calculation” means a calculation for the purposes of subsection (1) or (3) of section 60 .

Treatment of certain payments out of general fund.

66. —(1) Subject to subsection (2) and whether or not payments have been made to which section 60 relates, the Bank may, at its discretion and to such extent as it may deem proper from time to time charge on the deposit protection account any other payment out of the general fund which, in the opinion of the Bank, was applied—

(a) to protect the interests of persons or any class of persons maintaining deposits with one or more holders or former holders of licences, or

(b) to promote the orderly and proper regulation of banking.

(2) The Bank shall, from time to time, keep the Minister and every holder of a licence informed of the general principles which guide the Bank in respect of the exercise of its discretion and shall consider any representations which may be made on those principles by any holder of a licence.

Reconstitution of deposit protection account.

67. —(1) Subject to section 68 , the Bank shall from time to time apportion among the holders of licences, in proportion to the amounts of their respective deposits required to be maintained at the time of such apportionment in the deposit protection account, any payments charged on that account (other than any repayment or any part thereof for the purposes of this Chapter) in accordance with section 60 or section 66 together with any moneys due but not paid to the holders in accordance with section 69 and the amount so ascertained in respect of each holder shall, subject to subsection (2) be debited against, or credited to, as the case may be, that holder's deposit in the said account.

(2) (a) The aggregate of the amounts debited by virtue of subsection (1) in any period (being a period between a calculation or recalculation under section 55 and the first or subsequent recalculation, respectively, thereunder) in respect of a holder of a licence shall not exceed the amount of the holder's deposit maintained in accordance with this Chapter in the deposit protection account during that period.

(b) Where amounts which, but for paragraph (a), would have been debited against the holders of licences in the deposit protection account are not so debited because of that paragraph, then the total of the amounts not so debited shall be aggregated and apportioned in the next following year or, where necessary, the succeeding years in accordance with subsection (1) in proportion to the amounts of the relevant deposits at the time it is so apportioned.

(3) Each holder of a licence shall lodge with the Bank for the purpose of maintaining his calculated deposit, or where recalculated as last recalculated, in the deposit protection account, an amount to maintain that deposit and that holder shall comply with such requirement within 7 days or such longer period as the Bank may agree to in writing.

Exclusion from reconstitution.

68. —Where the Bank is satisfied that a reconstitution of the deposit protection account by apportionment solely in accordance with section 67 would have a material and detrimental effect on the financial position or viability of a holder of a licence, the Bank may, in its discretion but only to such extent or for such period and subject to such conditions as it considers appropriate, exclude the holder from such a reconstitution in which case the amount involved may be apportioned among the other holders of licences.

Crediting of moneys to deposit protection account, distributions, etc.

69. —(1) In addition to amounts representing deposits maintained under section 55 (including amounts duly lodged for the purpose of section 67 (3)) there shall be credited to the deposit protection account any sum paid to the Bank,

(a) by a liquidator for the purposes of section 61 , or

(b) in respect of the repayment of the principal of any moneys provided by virtue of section 66 or of any interest thereon,

or

(c) which, in its opinion, ought to be lodged to that account.

(2) Where any sum has been credited to the deposit protection account in accordance with subsection (1) it shall—

(a) in the first instance be applied towards repayment of any liability to the Bank charged or chargeable to that account, and

(b) subject to subsection (3), thereafter be distributed (whether by way of payment or by reducing the amount to be lodged on a reconstitution of that account under section 67 ) among the holders of licences in proportion to the amounts by which each of their deposits were affected by the liability to which the said sum so relates.

(3) Where any sum distributable under subsection (2) relates to a deposit (at any time) in the deposit protection account by a former holder of a licence which has been wound up, then such sum shall—

(a) accrue to the Bank unless, upon ceasing to carry on that business, that former holder's banking business was amalgamated with or transferred to another holder of a licence, in which case it shall accrue to that other holder, or

(b) where the provisions of this subsection also primarily apply to that other holder (being also a former holder at the time of the relevant distribution), be traced through that other former holder and any other former holders until it accrues to either the Bank or a holder of a licence at that said time.

(4) Whenever any sum accrues to the Bank by virtue of subsection (3), the Bank may, if it thinks proper so to do, waive, in whole or in part and in favour of such person and upon such terms as it thinks proper having regard to all the circumstances of the case, the right of the Bank to such sum or such part thereof.

Expenses and remuneration of liquidator under this Chapter.

70. —(1) Subject to subsection (2), no deduction shall be made from assets vesting in the liquidator by virtue of section 58 for expenses incurred or remuneration claimed by the liquidator in respect of matters to which this Chapter relates and, accordingly, such expenses and remuneration shall be dealt with as if they related to the winding up of the holder or former holder of the licence under the Companies Acts, 1963 to 1986.

(2) Where, on the application of a liquidator to whom this Chapter relates, the Bank is satisfied that there are insufficient assets out of which expenses and remuneration can be paid in accordance with subsection (1), then the Bank may permit all reasonable expenses properly incurred and such remuneration to the liquidator as the Bank considers appropriate to be paid out of the amount vesting in the liquidator under section 58 , or otherwise out of the deposit protection account, but only to the extent of that insufficiency.

Limitation of time.

71. —Where any amounts payable by the Bank and to which section 60 relates have not been paid and such non-payment is not due to any wilful neglect or default of the Bank to make those payments then, upon the completion of the winding up of the holder or former holder of the licence concerned, the Bank shall be under no obligation to make any payments in respect of those amounts.

Regulations ( Chapter V ).

72. —(1) The Minister may, after consultation with the Bank, make regulations for the purpose of specifying persons for the purpose of paragraph (h) of the definition of “interbank deposits” in section 53 .

(2) The Minister may, to such extent as he sees fit, make regulations for the purpose of giving effect to any recommendations made to him by the Bank in accordance with section 56 for the purposes of section 55 (2) or 62 (1) (b).

(3) Regulations under subsection (2) may contain such incidental, transitional, consequential and supplementary provisions as are considered necessary by the Minister after consultation with the Bank.

Extension of application of Chapter V .

73. —(1) Where, after consulting with the Bank and with such Ministers of the Government (if any) as he considers it appropriate to consult with in the circumstances, the Minister is of the opinion that—

(a) a class of business which involves or includes the maintaining of deposits or savings by persons with a member of the class who is not required to be the holder of a licence granted under section 9 of the Act of 1971, but whose business (in so far as it relates to deposits or savings maintained by persons with him) is similar to the business of such a holder or a building society duly incorporated in the State, and

(b) a system of deposit or savings protection, similar to the deposit protection provided by this Chapter in respect of persons maintaining deposits with the holders of licences so granted, would be in the public interest to be provided in respect of the class,

then the Minister may by regulation require the Bank to establish and maintain in the general fund an account for that purpose and, accordingly, the provisions of section 53 , subsections (2) to (7) of section 55 and sections 56 to 72 shall apply with such modifications as the Minister by regulation considers necessary to give effect to each such account so established.

(2) Notwithstanding section 7 (4) of the Act of 1971 (as amended by this Act) and without prejudice to subsection (1) where, after consulting with the Bank and with such Ministers of the Government (if any) as he considers it appropriate to consult with in the circumstances, the Minister is of the opinion that it is in the public interest so to do, he may by regulation require any institution to which section 7 (4) (a) (ii) of the Act of 1971 relates to maintain a deposit in the deposit protection account established under section 54 and for that purpose the provisions of section 53 , subsections (2) to (7) of section 55 and sections 56 to 72 shall apply with such modifications as are necessary to give effect to the regulation.