Islamic Banking Act · s 44

Suggest a correction

Tell us what is wrong in this text. We check every suggestion against the official version before we change anything.

What is wrong?Wrong or mistyped wordsWrong structure or numberingWrong title or detailsText that appears twice

What should change, and whyUp to 2,000 characters.The text as it should read (optional)

44.
Minimum liquid assets
(1) The Authority may by notice in writing to each Islamic bank require such Islamic banks to hold at all times a minimum amount or amounts of liquid assets. In determining the minimum amount or amounts of liquid assets which Islamic banks will be required to hold, the Authority shall take into consideration the nature and modalities of Islamic banking business.
(2) The minimum amount or amounts of the assets so specified to be held shall be expressed in the form of —
(a) a percentage or percentages which those assets shall bear to the sight, savings account, time and other deposit liabilities of each

Islamic Banking 54

Islamic bank and such other liabilities thereof as may be determined by the Authority, either jointly or separately; and
(b) a percentage which those assets shall bear to the investment account of each Islamic bank, and any percentage so specified may be varied by the Authority by notice in writing to each Islamic bank.
(3) A notice under subsection (1) shall not take effect before the expiry of a period specified in the notice, being not less than 10 days from the date of the notice.
(4) During any period in which an Islamic bank is not in compliance with a notice under subsection (1), the Islamic bank shall not make further financing facilities available to any person.
(5) For the purpose of computing the minimum amount of liquid assets under this section and of specified assets within the meaning of section 46 and the savings account, time and other liabilities of an
Islamic bank carrying on Islamic banking business in Brunei Darussalam and elsewhere and such other liabilities of such an Islamic bank as may be determined by the Authority, the office and branches of such an Islamic bank in Brunei Darussalam are deemed to constitute a separate Islamic bank carrying on Islamic banking business in Brunei Darussalam.
(6) The following are liquid assets for the purposes of this section —
(a) notes and coins which are legal tender in
Brunei Darussalam;
(b) balances with the Authority; and
(c) such other assets as the Authority may approve.
(7) The Authority may by notice in writing require each
Islamic bank to render such returns as the Authority considers necessary for the implementation of this section.

Islamic Banking
(8) An Islamic bank which fails to comply with any provision of this section is liable to pay, on being called upon to do so by the Authority, a penalty of $3,000 per day or such other amount as the Authority may determine for every day during which the failure continues.
(9) An Islamic bank which fails or refuses to pay the penalty under subsection (8) is guilty of an offence and liable on conviction to a fine not exceeding $150,000.

Edit the text above. Up to 20,000 characters.Where you checked it (optional)A link to the official version, if you have one.

The text as we hold it

Open the official text

s 44Minimum liquid assets

(1)

The Authority may by notice in writing to each Islamic bank require such Islamic banks to hold at all times a minimum amount or amounts of liquid assets. In determining the minimum amount or amounts of liquid assets which Islamic banks will be required to hold, the Authority shall take into consideration the nature and modalities of Islamic banking business.

(2)

The minimum amount or amounts of the assets so specified to be held shall be expressed in the form of —

(a)

a percentage or percentages which those assets shall bear to the sight, savings account, time and other deposit liabilities of each

Islamic Banking 54

Islamic bank and such other liabilities thereof as may be determined by the Authority, either jointly or separately; and

(b)

a percentage which those assets shall bear to the investment account of each Islamic bank, and any percentage so specified may be varied by the Authority by notice in writing to each Islamic bank.

(3)

A notice under subsection (1) shall not take effect before the expiry of a period specified in the notice, being not less than 10 days from the date of the notice.

(4)

During any period in which an Islamic bank is not in compliance with a notice under subsection (1), the Islamic bank shall not make further financing facilities available to any person.

(5)

For the purpose of computing the minimum amount of liquid assets under this section and of specified assets within the meaning of section 46 and the savings account, time and other liabilities of an

Islamic bank carrying on Islamic banking business in Brunei Darussalam and elsewhere and such other liabilities of such an Islamic bank as may be determined by the Authority, the office and branches of such an Islamic bank in Brunei Darussalam are deemed to constitute a separate Islamic bank carrying on Islamic banking business in Brunei Darussalam.

(6)

The following are liquid assets for the purposes of this section —

(a)

notes and coins which are legal tender in

Brunei Darussalam;

(b)

balances with the Authority; and

(c)

such other assets as the Authority may approve.

(7)

The Authority may by notice in writing require each

Islamic bank to render such returns as the Authority considers necessary for the implementation of this section.

Islamic Banking

(8)

An Islamic bank which fails to comply with any provision of this section is liable to pay, on being called upon to do so by the Authority, a penalty of $3,000 per day or such other amount as the Authority may determine for every day during which the failure continues.

(9)

An Islamic bank which fails or refuses to pay the penalty under subsection (8) is guilty of an offence and liable on conviction to a fine not exceeding $150,000.