Banking and Financial Institutions Act 1989 · As enacted · Part II
Section 14
Official textFrom Laws of Malaysia Online, unchanged
No institution shall be granted a licence under section 6 (4) nor shall such institution so licensed carry on its licensed business without the written consent of the Minister if—
licence
"licence" means a licence granted or deemed to be granted under section 6 (4);
being a company, its capital funds unimpaired by losses or otherwise are less than the minimum amount of capital funds;
being a foreign company—
foreign company
"foreign company" has the meaning assigned thereto by the Companies Act 1965;
its capital funds unimpaired by losses are less than the minimum amount of capital funds; and
capital funds
"capital funds" means paid-up capital and reserves, and includes, for the purposes of sections 37 and 61, the whole or any proportion of any other class, category or description of capital as may be specified by the Bank;
its net working funds in Malaysia unimpaired by losses are less than the minimum amount of net working funds; or
subject to subsection (3), it is owned or controlled directly or indirectly by a foreign government or an agency of such government.
foreign government
"foreign government" means the government of any country, territory or place outside Malaysia;
Every licensed institution shall maintain a minimum amount of capital funds or a minimum amount of net working funds, as the case may be, and if such minimum amount is at any time increased, the licensed institution shall maintain the increased amount within such period as may be stated in the order making the increase, and the period so stated shall not be less than three months.
licensed institution
"licensed institution" means any institution licensed or deemed to be licensed under section 6 (4);
Where the Minister is satisfied that a licensed institution has become owned or controlled directly or indirectly by a foreign government or an agency of such government, the Minister may allow the institution to continue to hold its licence for such temporary period or periods and subject to such condition or conditions as the Minister may determine for the purposes of winding-up its business in Malaysia or of enabling the foreign government or agency of such government to divest itself of the ownership or control of the institution.
Minister
"Minister" means the Minister for the time being charged with the responsibility for finance;
Terms defined in s 2
capital funds
Defined · s 2"capital funds" means paid-up capital and reserves, and includes, for the purposes of sections 37 and 61, the whole or any proportion of any other class, category or description of capital as may be specified by the Bank;
foreign company
Defined · s 2"foreign company" has the meaning assigned thereto by the Companies Act 1965;
foreign government
Defined · s 2"foreign government" means the government of any country, territory or place outside Malaysia;
licence
Defined · s 2"licence" means a licence granted or deemed to be granted under section 6 (4);
licensed business
Defined · s 2"licensed business" means a business licensed or deemed to be licensed under section 6 (4);
licensed institution
Defined · s 2"licensed institution" means any institution licensed or deemed to be licensed under section 6 (4);
minimum amount of capital funds
Defined · s 2"minimum amount of capital funds" or "minimum amount of net working funds" means such amount of capital funds or net working funds, as the case may be, to be maintained by licensed institutions as may be prescribed by the Minister on the recommendation of the Bank;
minimum amount of net working funds
Defined · s 2"minimum amount of capital funds" or "minimum amount of net working funds" means such amount of capital funds or net working funds, as the case may be, to be maintained by licensed institutions as may be prescribed by the Minister on the recommendation of the Bank;
Minister
Defined · s 2"Minister" means the Minister for the time being charged with the responsibility for finance;
net working funds
Defined · s 2"net working funds", in relation to a licensed foreign bank, means such net liabilities of the bank outside Malaysia as may be defined and computed in such manner as may be specified by the Bank;
Part III
Scheduled Businesses and Representative Offices
Part IV
Restrictions Relating to Acceptance and Solicitation of, Advertisement for, and Inducement to Make, Deposits
Part V
Subsidiaries and Offices of Licensed Institutions
Part VI
Restrictions on Dealings of Licensed Institutions
Part VII
Financial Requirements and Duties of Licensed Institutions
Part VIII
Ownership, Control and Management of Licensed Institutions
Part IX
Restrictions on Business of Licensed Institutions
Part X
Powers of Supervision and Control Over Licensed Institutions
Part XI
Investigation, Search and Seizure
Part XII
Application of Parts X and XI to Non-Scheduled Institutions Engaged in Provision of Finance
Part XIII
Information and Secrecy
Part XIV
Offences
Part XV