Singapore legislation
Section 9
Section 9
Minimum capital requirements
(1)
Subject to this Act, a company must not be granted a bank licence unless —
where the company intends to carry on banking business in Singapore as a bank incorporated in Singapore, its paid‑up capital is at least $1,500 million or such other amount as may be prescribed, and its capital funds are at least that amount; or
where the company intends to carry on banking business in Singapore through a branch or office located in Singapore, its head office capital funds are at least the equivalent of $200 million.
(2)
Subject to subsection (2A), the paid‑up capital and capital funds of a bank incorporated in Singapore must be denominated in Singapore dollars or any currency approved by the Authority, and must be in ordinary shares.
(2A)
Any amount of paid‑up capital or capital funds of a bank incorporated in Singapore above the amount mentioned in subsection (1)(a) may be denominated in any currency, and may be in any type of shares.
(3)
A bank incorporated in Singapore must not reduce its paid‑up capital, or purchase or otherwise acquire shares issued by the bank if such shares are to be held as treasury shares, without the approval of the Authority.
(3A)
A bank must at all times maintain —
if it is a bank incorporated in Singapore, capital funds of at least the amount mentioned in subsection (1)(a); or
if it is a bank incorporated outside Singapore, head office capital funds of at least the equivalent of the amount mentioned in subsection (1)(b).
(4)
Any bank which fails to comply with any requirement under subsection (2) or (3A) must immediately notify the Authority.
(5)
Where a bank fails to comply with any provision of this section, the Authority may, without affecting subsection (5A), by written notice to the bank —
restrict or suspend the operations of the bank; or
give such directions to the bank as the Authority considers appropriate, and the bank must comply with such directions.
(5A)
Any bank which fails to comply with —
subsection (2), (3), (3A) or (4); or
any restriction or suspension imposed by the Authority, or any direction of the Authority, under subsection (5),shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $250,000 and, in the case of a continuing offence, to a further fine not exceeding $25,000 for every day or part of a day during which the offence continues after conviction.
(6)
In this section —
Definition
“head office capital funds”, in relation to a bank incorporated outside Singapore, means the aggregate of its paid-up capital (or its equivalent recognised by the Authority as applicable to the bank under the laws of the country or territory in which the bank is incorporated, formed or established) and its published reserves (excluding such reserves as the Authority may specify in writing), deduction having been made for any loss appearing in the accounts of the bank;
Definition
“paid-up capital” does not include any amount that is represented by treasury shares.