Section 42C: Resolution planning

42C. Resolution planning.__ (1) To give effect to the Resolution objectives as set out in section 42B, the State Bank may__ (i) prepare a plan for the orderly Resolution of a systemically important bank as specified by the State Bank, or any other banking company and update such plans at regular intervals or at any other time it deems necessary; (ii) at regular intervals or at any other time as it deems necessary, conduct resolvability assessment of a systemically important bank or any other banking company with a view to identify any impediments for the orderly Resolution of such banking company; (iii) direct the banking company concerned to demonstrate that there is no impediment to its resolvability; and may call any information or document or assistance from the banking company concerned, its sponsors, or any entity within the group of which the banking company concerned is a part, within the time, form and manner set out in the direction; and (iv) take such steps for the removal of impediments identified under this section or issue directions to the banking company concerned, or its sponsor shareholders, to take any measures for removal or mitigation of the effects of impediments within a time period as specified by the State Bank in relation to its legal, operational, financial and group structure, including any measures for the separation of critical functions from other functions; intra-group dependencies, products, assets, rights or liabilities for effective Resolution of the banking company concerned. (2) The banking company concerned and any other person, to whom any direction has been issued under this section, shall be bound to comply with such direction. (3) The Resolution plans shall not in any way prejudice the powers conferred on the State Bank to take other measures provided under this Ordinance.

Effective date: 1962-06-07

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