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Section 94

Maintenance of capital adequacy ratio

of Labuan Financial Services and Securities Act 2010

ActIn forceProvision 94 of 201
Section 94
(1)

No bank licensee shall carry on Labuan banking business or Labuan investment banking business if its capital funds are less than the amount specified in writing by the Authority.

Act 704

(2)

Every bank licensee shall maintain at all times, such capital adequacy ratio, as may be specified in writing by the Authority from time to time and no bank licensee shall carry on Labuan banking business or Labuan investment banking business if such specified capital adequacy ratio is not complied with, except with the approval of the Authority.

(3)

A bank licensee shall at all times maintain its capital funds to reflect the risk weighted capital ratio as may be specified in writing by the Authority from time to time.

(4)

The Authority may direct a bank licensee to take appropriate measures to rectify any deficiencies in such specified ratio in such manner as the Authority deems fit.