The introduction of this new act deems necessary as there is an urgent need to strengthen financial sector supervision and safety nets as well as enhance crisis management capacity, high ranking finance ministry official disclosed.

The Act will strengthen banking resolution tools for the Central Bank to deal with potential bank failures in an efficient manner with clear legal mandates and improved funding arrangements.

A full revision of the Banking Act is underway and it will strengthen the resolution authority, mandate, and powers of the Central Bank as well as the deposit insurance framework and the regime for liquidation of financial institutions.

The act will provide provisions to strengthen regulatory standards in areas including bank licensing, bank ownership, consolidated supervision, the capital and liquidity framework, large exposures and related party transactions, governance requirements, and recovery planning and early intervention powers.