Skip to content
bruneilawsby aturio
In force2024 Revised Edition
Contents

Part · Reserve Funds, Dividends, Balance Sheets and Information

24. Maintenance of reserve fund

(1)

Every bank shall —

(a)

maintain a reserve fund; and

(b)

transfer to that reserve fund out of the net profits of each year, after due provision has been made for taxation, a sum determined as follows —

(i)

so long as the amount of the reserve fund is less than 50 per cent of the paid-up capital, the sum shall not be less than 50 per cent of those net profits;

(ii)

so long as the amount of the reserve fund is 50 per cent or more but less than 100 per cent of the paid-up capital, the sum shall not be less than 25 per cent of those net profits; and

(iii)

so long as the amount of the reserve fund is 100 per cent or more of the paid-up capital, the sum shall not be less than 5 per cent of those net profits.

(2)

If the Authority is satisfied that the aggregate reserve fund of a bank whose head office is situated outside Brunei Darussalam is adequate for its business, it may, by order in writing, exempt that bank from the provisions of subsection (1) for such period as it thinks fit.

(3)

Any bank which fails to comply with the provisions of subsection (1) is guilty of an offence and liable on conviction to a fine not exceeding $100,000 and, in the case of a continuing offence, to a further fine not exceeding $10,000 for every day during which the offence continues after conviction.

Banking

Report

Read on from s 25

Part

Prohibited Business

Read on from Part

Part

Minimum Assets Requirements

Read on from Part

Part 7

Read on from Part 7

Part

Overseas Branches and Representative Offices of Domestic Banks

Read on from Part

Part

Unclaimed Balances

Read on from Part

Part

Invitations to Make Deposits

Read on from Part

Part

General

Read on from Part

Schedules