Singapore legislation
Section 7A
Section 7A
Capital ratio
(1)
The Authority may require every finance company to maintain capital funds in Singapore in proportion to its total assets or to every category of assets at such ratio or ratios as may from time to time be determined by the Authority by written notice.
(2)
A finance company must maintain a capital adequacy ratio of at least 12% or such other percentage as may be determined by the Authority from time to time, as calculated in accordance with such form, content and manner as may be determined by the Authority by written notice.
(3)
The Authority may suspend or restrict the operations of a finance company which fails to comply with subsection (2) or any requirement of the Authority under subsection (1).