Banking Act · 2024 Revised Edition · Part · Minimum Assets Requirements
45. Minimum cash balances
Official textFrom Attorney General's Chambers, unchanged
The Authority may by notice in writing to each bank require such banks to maintain minimum cash balances, not exceeding 30 per cent of each bank’s deposit and other liabilities, on deposit with the Authority as reserves against their deposit and other liabilities.
Authority
“Authority” means the Brunei Darussalam Central Bank established by the Brunei Darussalam Central Bank Order, 2010;
Subject to the limit specified in subsection (1), the Authority may specify different ratios for different types of liabilities and may further specify the method of computing the amount of the required reserves, but the ratios shall be uniform for all banks.
No specification of, or change in, the minimum reserve requirements under subsection (1) or (2) shall take effect before the expiry of 30 days notice in writing to each bank of the Authority’s intention to take the action.
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;
Where a bank (in this section referred to as the defaulting bank)
has failed to maintain minimum cash balances as required under subsection (1), the Authority may in writing direct the defaulting bank to make good the deficiency within such period as may be specified and the defaulting bank shall comply with such requirements.
If the defaulting bank fails to make good the deficiency within the period specified under subsection (4), the Authority may serve notice in writing on any other bank in Brunei Darussalam (in this section referred to as
Banking 54
the debtor bank) with which the defaulting bank has a credit balance, whether in current or deposit account, directing that debtor bank to transfer to the Authority the full amount of such credit balance; and, notwithstanding the provisions of any other written law, the debtor bank shall immediately comply with the requirements of that notice.
No action shall lie against, and no liability shall attach to, the debtor bank for any loss or damage suffered by the defaulting bank as a result of the debtor bank taking action in compliance with the requirements of the notice under subsection (5).
Without prejudice to any action that may be taken by the
Authority under subsection (4) or (5), on being called upon to do so by the
Authority, a bank which fails to maintain minimum cash balances as required under subsection (1) is liable to pay a penalty of $3,000 per day or such larger amount as the Authority may determine for every day during which the failure continues.
A bank which fails or refuses to pay the penalty under subsection (7) is guilty of an offence and liable on conviction to a fine not exceeding $150,000.
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;
Part 7
Part
Overseas Branches and Representative Offices of Domestic Banks
Part
Unclaimed Balances
Part
Invitations to Make Deposits
Part