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45. (1)

Maintenance of reserve fund

Subject to subsection (2) every licensed financial institution shall maintain a reserve fund and shall, out of its net profits of each year transfer to that fund a sum equal to not less than twenty per cent of profits whenever the amount of the reserve fund is less than a hundred per cent of the paid-up or, or as the case may be, assigned capital of the licensed financial institution. (2) No licensed financial institution or licensed financial holding company shall declare, credit or pay any dividend or make any other transfer from profits whenever the declaration, credit, payment or transfer: (a) would result in an impairment of the capital required under section 44; or (b) if the licensed financial institution or licensed financial holding company realises a net loss for that financial year.

46. (1)

Adequacy of capital

A licensed financial institution or a licensed financial holding company shall not at any time have a capital adequacy ratio of less than the percentage calculated in the manner, the Central Bank may determine, in respect of all or any appropriate class of licensed financial institution.

(2) Any ratio required under subsection (1) shall be calculated on a consolidated and a solo basis for every licensed financial institution within a financial group.

Additional capital in respect of special risks 47. The Central Bank may require a licensed financial institution or a licensed financial holding company to maintain additional capital as it may consider appropriate to address risks in the licensed financial institution, the licensed financial holding company or in the financial system.

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