Banking Act (Cap. 371), article 9

9. (1) A licence shall automatically cease to have any effect if the holder - (a) renounces the licence; or (aa) uses its licence exclusivel y to engage in the activities referred to in point (1)(b) of Article 4(1) of the CRR and has, for a period of fiv e consecutive years, average total assets below the thresholds set out in that Article; (b) is declared bankrupt or goe s into liquidation or change in its authorisation to conduct the business or is otherwise dissolved; or (c) has ceased to operate as a result of a merger with another credit institution; or (d) in the case of a credit institution licensed or holding an equivalent authorisation in a third country and which has been granted a licence under this Act to open a branch in Malta, has had its authorisation withdrawn by the overseas regulatory authority in the third country within which the credit institution has been authorised. (2) The competent authority may only restrict or withdraw the licence issued to a credit institution in any of the following cases where such a credit institution - (a) does not make use of the licence within twelve months, expressly renounces the licence or has ceased to engage in business for more than six months, if no provision was made for the licence to lapse in such cases; (b) has obtained the licence through false statements or any other irregular means; (c) no longer fulfils the conditions under which the licence was issued; S.L. 371.16 (d) no longer meets the prudenti al requirements set out in Parts Three, Four or Six of the CRR, e x c e p t f o r t h e requirements laid down in Articles 92a and 92b of the CRR, or imposed under regulations 9(1)( a) and 10(1) and (2) of the Banking Act (Supervisory Review) Regulations or can no longer be relied on to fulfil its obligations towards its creditors, and, in particular, no lo n ge r p r o vi d e s s e c u r i t y f or th e a s s e t s e n tr u s t e d t o i t by its depositors; S.L. 371.05 (e) commits one of the breaches referred to in regulation 7(1) of the Administrative Penalties, Measures and Investigatory Powers Regulations ; (f) conceals from, or fails to notify to the competent authority of any documen t or information or change therein which it was its dut y to reveal or notify under this Act or any regulations made or any Banking Rules or Conduct of Business Rules issued thereunder; (g) fails to comply with any of the provisions of this Act BANKING [CAP. 371. 25 or any regulations made or Banking Rules issued thereunder or with the conditions under which the licence is issued; (h) has insufficient assets to cover its liabilities; (i) has suspended payment or is about to suspend payment. (3) Restrictions imposed by the competent authority pursuant to sub-article (2) shall be such restrictions as the competent authority shall consider appropriate for the proper compliance by the credit institution with the provisions of this Act and any regulations made and, or Banking Rules and, or Conduct of Busin ess Rules issued thereunder and the conditions, if any, of its lice nce and for the protection of depositors and may include (without preju dice to the generality hereof) - (a) the removal of any officer o f the credit institution or the replacement of any officer by such person as the competent authorit y may designate; (b) the requirement for any person who directly or indirectly possesses a quali fying shareholding in the credit institution to divest himself of all or part of that holding; (c) the requirement for the credit institution to take or refrain from any action; (d) the requirement that the credit institution be prohibited from undertaking any transaction or transactions or any class of business or be permitted to undertake any transaction or transactions or any class of business only upon such terms as the competent authority may prescribe. (4) The competent authority shall have the power to vary or remove any restrictions im posed under this article. (5) Where the competent authority intends to restrict or withdraw a licence or to vary any restriction, it shall serve w ritten notice of its intention on the credit institution; such notice shall specify the grounds upon which the competent authority intends to take action and shall specify a period, being a period not less than forty-eight hours and not longer than thirty calendar days, in which the credit institution shall be enti tled to make representations to the competent authority as to why such action should not be taken. Unless the competent authority decides that the matter is urgent, it shall not impose or vary any restriction or withdraw a licence before the expiry of such period. (6) A licence granted for the esta blishment in Malta of a branch of a credit institution licensed or holding an equivalent authorisation in a third country may only be withdrawn after consultation with the overseas regulatory authorities of the co untry within which it has been authori sed, unless the competent autho rity decides that the matter is urgent or that there are circumstanc es which make such prior consultation inappropriate. 26 CAP. 371.] BANKING (7) Upon the restriction or withdrawal of a licence of a credit institution licensed in Malta, the competent authority shall in form the overseas regulatory authorities of the countries in which t he credit institution or its subsidiaries are carrying on the busi ness of banking. The competent authority shall notify the EBA of every withdrawal of a licence together with the reasons for such a withdrawal. (8) Where the competent authority is satisfied that the circumstances so warrant, it may at any time make public any action it has taken u nder this article. Appeals. Amended by: VI. 2001.24. Substituted by: XVII. 2002.166. Amended by: XVII. 2009.15. Substituted by: X. 2015.13; LXXI.2021.30. Cap. 330.