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ACT VII OF 2011 ACT VII OF 2011 BANKING COMPANIES (AMENDMENT) ACT, 2011 An Act further to amend the Banking Companies Ordinance, 1962 [Gazette of Pakistan, Extraordinary, Part - I 2nd April, 2011] F. No. 22(16)/2008-Legis. dated 2-4-2011.---The following Act of Majlis-e-Shoora (Parliament) received the assent of the President .on the 29th March, 2011 and is hereby published for general information: Whereas it is expedient further to amend the Banking Companies Ordinance, 1962, (LVII of 1962), for the purposes hereinafter appearing; It is hereby enacted as follows: 4. Amendment of section 26-A, Ordinance LVII of 1962.---In the said Ordinance, in section 26A, after subsection (4), the following new subsections shall be added, namely:-- "(5) Where the State Bank has determined that a banking company,-- (a) is carrying on its business in a manner detrimental to the interest of its depositors; or (b) is materially unable to discharge its financial obligations or continue its operations; or (c) has failed to meet prescribed capital requirements or cash and liquidity requirements or provisioning requirements or any condition specified in the licence or any preventive or remedial measure prescribed by the State Bank, the State Bank, by an order in writing stating reasons, may impose conditions or restrictions on the banking company on accepting deposits from any class of depositors or type of deposits for such period as may be specified in the order and the State Bank shall exercise the power reasonably, fairly and justly. (6) No order shall be made unless the banking company concerned has been given an opportunity of making a representation to the State Bank and if the State Bank is of the opinion that any delay would be detrimental to the public interest or the interest of the banking company or its depositors., the State Bank may, at the time of giving the opportunity aforesaid or at any time thereafter and pending the consideration of the representation aforesaid, if any, may make an appropriate interim order."