Payment Clearing and Settlement Act

Marginal note:Participation of authorized foreign banks

• 22.1 (1) An authorized foreign bank that is or wishes to be a participant in a designated clearing and settlement system shall, from time to time, provide the Governor of the Bank with any information regarding the application of foreign laws to the authorized foreign bank that the Governor considers necessary.

• Marginal note:Prohibition or conditions

  (2) If the Governor is of the opinion, on the basis of the information provided under subsection (1) or of any other information that the Governor considers relevant, that the authorized foreign bank’s participation in the designated clearing and settlement system poses, or is likely to pose, a systemic risk or an unacceptable risk to the Bank in guaranteeing settlement of the authorized foreign bank’s obligations, the Governor may prohibit it from being a participant or may require it to comply with the conditions with respect to its participation that the Governor considers necessary.

• Marginal note:Powers of Governor of Bank

  (3) The Governor’s powers under subsection (2) are in addition to all other powers conferred on the Governor and the Bank by this Act.

• Marginal note:Definitions

  (4) The definitions in this subsection apply in this section.

  authorized foreign bank

  banque étrangère autorisée

  authorized foreign bank means an authorized foreign bank within the meaning of section 2 of the Bank Act. (banque étrangère autorisée)

  designated clearing and settlement system

  système de compensation et de règlement

  designated clearing and settlement system has the meaning assigned to that expression by section 3. (système de compensation et de règlement)