—(1) The Authority may, in respect of loans and advances or investments of banks in Singapore, make recommendations to the banks in respect of the following:
the purposes for which they may or may not be granted or made;
the maximum maturities or, in the case of loans and advances, the type and minimum amount of security which shall be required and, in the case of letters of credit, the minimum or margin deposit; or
the limits for any particular category of loans, advances or investments or for the total amount outstanding in respect of those loans, advances or investments.
(2) Any recommendation made under subsection (1) shall apply uniformly to all banks in Singapore engaging in the transactions covered by the recommendation.
(3) Where the Authority has made a recommendation under subsection (1) and the banks have accepted it without objections, or have failed to notify the Authority of their objections or have failed to forward their representations to the Authority within the time specified in subsection (4), the Authority may issue a direction in writing to each bank on any of the matters referred to in subsection (1) requiring that effect be given to the recommendation within a reasonable time, and the banks shall comply with that direction.
(4) Where the Authority has made a recommendation and the banks have, or any bank has, notified the Authority within 14 days of the receipt of the recommendation that the banks object, or any bank objects, to the recommendation, the Authority shall call upon the banks or bank, as the case may be, to make representations in writing within one month of the notification concerning those objections.
(5) Upon receipt of such representations, the Authority shall consider them and may —
reject the representations; or
amend or modify the recommendation in accordance with the representations, or otherwise,
and in either event, the Authority shall thereupon issue a direction in writing to the banks or bank, as the case may be, requiring that effect be given to the original recommendation or to the recommendation as subsequently amended or modified by the Authority within a reasonable time.
(6) The banks or any bank, as the case may be, shall comply with the direction under subsection (5).