In forceUpdated to 15 Oct 2022Read it in Bahasa Malaysia

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Labuan Islamic Financial Services and Securities Act 2010 · Updated to 15 Oct 2022 · Part VI · Labuan Islamic Banking

69. Maintenance of capital adequacy ratio

(1)

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

(2)

Every Islamic 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 Islamic bank licensee shall carry on Labuan Islamic banking business or Labuan Islamic investment banking business if such specified capital adequacy ratio is not complied with, except with the approval of the Authority.

(3)

An Islamic 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 an Islamic bank licensee to take appropriate measures to rectify any deficiencies in such specified ratio in such manner as the Authority deems fit.

Terms defined in this Act

Authority
Defined · s 2
“Authority” means the Labuan Financial Services Authority established under section 3 of the Labuan Financial Services Authority Act 1996;
Open s 2
Islamic bank licensee
Defined · s 2
“Islamic bank licensee” means a Labuan Islamic bank and a Labuan Islamic investment bank;
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Labuan Islamic banking business
Defined · s 60
“Labuan Islamic banking business” means— (a) the business of receiving deposits on current account, deposit account, savings account or any other account in compliance with Syariah principles as may be specified by the Authority; (b) Labuan Islamic investment banking business; (c) Labuan Islamic financial business; or (d) such other business as the Authority, with the approval of the Minister, may specify, in any currency (including ringgit where permitted by the *Exchange Control Act 1953 or such other relevant law in force);
Open s 60
Labuan Islamic investment banking business
Defined · s 60
“Labuan Islamic investment banking business” means any of the following business: (a) providing financing facilities in compliance with Syariah principles; (b) providing consultancy and advisory services relating to corporate and investment matters, including dealing in securities, or making and managing investments, on behalf of any person, in compliance with Syariah principles; (c) undertaking foreign exchange transactions, profit rate swaps, dealings in Islamic derivative instruments or Islamic derivative financial instruments which are in compliance with Syariah principles or any other similar risk management activities; (d) Labuan Islamic financial business; or (e) such other business as the Authority, with the approval of the Minister, may specify, *NOTE—The Exchange Control Act 1953 has since been repealed by the Financial Services Act 2013 which comes into operation on 30 June 2013—see sections 271 and 272…
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Report

Read on from s 70

Part VII

Labuan Takaful Business and Labuan Takaful Related Activities

Read on from Part VII

Part VIII

Labuan Islamic Trusts

Read on from Part VIII

Part IX

Labuan Islamic Foundation

Read on from Part IX

Part X

Read on from Part X

Part XI

Islamic Self-Regulatory Organizations

Read on from Part XI

Part XII

General

Read on from Part XII