Central Bank Act, 1997

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Amendment of section 7 of Act of 1942.

21.—The following section is hereby substituted for section 7 of the Act of 1942:

“7.—(1) It shall be lawful for the Bank to do all or any of the following things, that is to say:

(a) buy or sell coin or gold or silver bullion, or other precious metal, or any currency or currency units, however described;

(b) receive deposits;

(c) open accounts in other countries or act as agent, depository, or correspondent of any credit institution carrying on business in or outside the State;

(d) with the consent of the Minister acquire, hold, or dispose of shares in a bank or other institution formed wholly or mainly by banks which are the principal currency authority in their respective countries;

(e) re-discount any exchequer note or bill, local authority bill, bill of exchange or promissory note on such terms and conditions as the Bank sees fit;

(f) make loans or advances to credit institutions on the security of such assets and subject to such terms and conditions as the Bank sees fit;

(g) fix and publish from time to time the minimum rate or rates at which the Bank may re-discount any bill or debt instrument or otherwise make funds available to credit institutions;

(h) buy, hold, or sell securities;

(i) keep registers of securities generally;

(j) operate or participate in any depository of securities or of other instruments;

(k) keep the accounts for the clearing and settlement of securities or payment instruments;

(l) become a member of, or a party to the establishment or operation of a payment system;

(m) operate or participate in any system that provides a settlement service for transactions in securities or other instruments for its members;

(n) enter into agreements with any depositories of securities or other instruments and to carry out any transactions under the terms of such agreements necessary for the settlement of transactions between members of such depositories and members of any depository operated by the Bank.”.