Banking Act · 2024 Revised Edition · Part · Licensing of Banks
11. Capital ratios
Official textFrom Attorney General's Chambers, unchanged
The Authority may require banks to maintain capital funds in
Authority
“Authority” means the Brunei Darussalam Central Bank established by the Brunei Darussalam Central Bank Order, 2010;
Brunei Darussalam in proportion to their total assets or to every category of assets at such ratio as may be prescribed.
Any bank incorporated in Brunei Darussalam shall not, at any time, have a capital adequacy ratio of less than 10 per cent or such other percentage as may be determined by the Authority, as calculated in accordance with such form, content and manner as may be determined by the
bank
“bank” means a company which carries on banking business and holds a licence granted under section 4 or 23, and includes all branches and offices in Brunei Darussalam of any such company for the purposes of this Act;
Authority by notice in writing.
Any licensed bank which fails to comply with the requirements of the Authority under subsection (1) is guilty of an offence and liable on conviction to a fine not exceeding $50,000 and, in the case of a continuing offence, to a further fine not exceeding $2,000 for every day during which the offence continues after conviction.
Banking
Subject to the provisions of any other written law, a bank incorporated in Brunei Darussalam shall not reduce its paid-up capital during the currency of its licence without the approval of the Authority.
The Authority may suspend or restrict the operations of a bank which fails to comply with subsection (2) or (4) or any requirement of the
Authority under subsection (1).
Terms defined in s 2
Authority
Defined · s 2“Authority” means the Brunei Darussalam Central Bank established by the Brunei Darussalam Central Bank Order, 2010;
bank
Defined · s 2“bank” means a company which carries on banking business and holds a licence granted under section 4 or 23, and includes all branches and offices in Brunei Darussalam of any such company for the purposes of this Act;
capital funds
Defined · s 2“capital funds”, in relation to a bank, means — (a) if the bank is a company whose head office is situated in Brunei Darussalam the paid-up capital and published reserves of the company (excluding such reserves as the Authority may specify by notice in writing) deduction having been made for any loss appearing in the accounts of the bank; (b) if the bank is a company whose head office is situated outside Brunei Darussalam, the net head office funds and such other liabilities as the Authority may decide: Provided that, except for the purposes of section 11, in determining the capital funds of a bank at any time there shall be deducted any debit balance appearing in the bank’s profit and loss account.
Part
Reserve Funds, Dividends, Balance Sheets and Information
Part
Prohibited Business
Part
Minimum Assets Requirements
Part 7
Part
Overseas Branches and Representative Offices of Domestic Banks
Part
Unclaimed Balances
Part
Invitations to Make Deposits
Part