Banking and Financial Institutions Act 1989 · As enacted · Part VII · Financial Requirements and Duties of Licensed Institutions
Section 37
Official textFrom Laws of Malaysia Online, unchanged
The Bank may specify that—
a licensed local institution shall maintain, at all times, capital funds unimpaired by losses, in such ratio to all or any assets or to all or any liabilities, or to both such assets or liabilities, of the institution and all its offices in and outside Malaysia as may be set out in the specification; and
licensed local institution
"licensed local institution" means any licensed institution established in Malaysia;
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a licensed foreign bank shall maintain, at all times, net working funds unimpaired by losses, in such ratio to all or any of the assets or to all or any of the liabilities, or both such assets or liabilities, of the bank and all its offices in Malaysia as may be set out in the specification.
licensed foreign bank
"licensed foreign bank" means any licensed bank established outside Malaysia;
Where any licensed institution referred to in subsection (1) is a corporation within a group of corporations which are related, the accounts of the licensed institution shall not for the purpose of this section be on a consolidated basis unless the Bank otherwise specifies.
licensed institution
"licensed institution" means any institution licensed or deemed to be licensed under section 6 (4);
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;
corporation
Defined · s 2"corporation" has the meaning assigned thereto by the Companies Act 1965;
liabilities
Defined · s 2"liabilities" includes debts, duties and obligations of every kind, whether present or future, or whether vested or contingent;
licensed foreign bank
Defined · s 2"licensed foreign bank" means any licensed bank established outside Malaysia;
licensed institution
Defined · s 2"licensed institution" means any institution licensed or deemed to be licensed under section 6 (4);
licensed local institution
Defined · s 2"licensed local institution" means any licensed institution established in Malaysia;
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;
related
Defined · s 2"related", in relation to a corporation, means related within the meaning of section 6 of the Companies Act 1965;
specify
Defined · s 2"specify", where no mode is mentioned, means specify from time to time in writing, and a power to specify includes the power to specify differently for different persons or different classes, categories or descriptions of persons;
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