Banking Act · 2024 Revised Edition · Part · Prohibited Business
39. Restrictions on acquisition of immovable property
Official textFrom Attorney General's Chambers, unchanged
Subject to subsection (2), a bank shall not acquire any immovable property wherever situated or interest therein such that the aggregate value of such property and interests held by the bank exceeds 20 per cent of the capital funds of the bank or such other percentage as the Authority may allow.
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;
For the purposes of determining the aggregate value of the interest in or rights over immovable property referred to in subsection (1), there shall be excluded such portion of the value as may be attributable to the following —
Banking
any interest in or right over immovable property or any part thereof used for the purpose of conducting the business of the bank in
Brunei Darussalam or housing or providing amenities for its officers;
any interest in or right over immovable property held by way of security for the purposes of a transaction entered into in the ordinary course of the business of the bank in Brunei Darussalam;
any interest in or right over immovable property held by way of enforcement of such security referred to in paragraph (b)
provided that it is disposed of as soon as practicable; and
such other interest in or rights over immovable property as the Authority may allow.
The Authority may provide for the manner of valuation of immovable property for the purposes of this section.
Authority
“Authority” means the Brunei Darussalam Central Bank established by the Brunei Darussalam Central Bank Order, 2010;
Any bank which contravenes 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.
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.
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Minimum Assets Requirements
Part 7
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Overseas Branches and Representative Offices of Domestic Banks
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Unclaimed Balances
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Invitations to Make Deposits
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