No.12 BANKll'<G AMENDMENT "branch" means any premises, other than the head office of a banking institution, where the banking institution conducts banking business. (2) No banking institution shall close a branch in Zimbabwe or establish a new branch in Zimbabwe unless it has given the Registrar at least fourteen business days' written notice of its intention to close the branch or establish the new branch, as the case may be. (3) If the Registrar has reasonable grounds for believing that the establishment of a new branch by a banking institution is economically unsound and may lead to non-compliance by the institution with any requirement of this Act, in the light of(a) the banking activities engaged in by the banking institution; and (b) the financial condition of the banking institution; and (c) the volume of business expected to be generated by the branch; the Registrar may, within seven days after being notified of the banking institution's intention to establish the branch, and after affording the banking institution an opportunity to make representations on the matter, direct the institution not to do so, or to do so subject to such tem1S and conditions as the Registrar may specify, and the banking institution shall comply with the direction. (4) A direction in tem1s of subsection (3) shall be in writing and shall state the grounds on which it is given. (5) Subject to section 73, a banking institution that fails to comply with a direction in terms of subsection (3) shall(a) be liable for a civil penalty of fifty United States dollars (or the maximum monetary figure specified from time to time for level four, whichever is the lesser amount) for each day the institution remains in default, not exceeding a period of one hundred and eighty-one days; and (b) if the institution continues to be in default after the period specified in paragraph (a), be guilty of an offence and liable on conviction to(i) a fine not exceeding level fourteen; and (ii) 17 a fine not exceeding level fourteen or to imprisonment for a period not exceeding six months or to both such fine and such imprisomnent in the case of every director or member of the board or goveming body of the institution.". New sections inserted in Cap. 24:20 Pa1t IV ("Conduct of Business by Banking Institutions") of the principal Act is amended by the insertion after section 28 of the following sections- "28A Corporate governance (1) Every banking institution controlling company shall establish and maintain adequate and effective procedures of corporate govemance consistent with such prudential standards as may be prescribed and with 230 2015