Singapore legislation
Section 9A
Section 9A
Capital requirements for qualifying subsidiaries
(1)
Despite section 9, a company incorporated in Singapore which is a qualifying subsidiary may be granted a bank licence under section 7 if its paid‑up capital is at least $100 million.
(2)
A bank which is a qualifying subsidiary 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.
(3)
A bank which is a qualifying subsidiary must maintain capital funds of at least $100 million unless the Authority approves otherwise.
(3A)
Subject to subsection (3B), the paid‑up capital and capital funds of a bank which is a qualifying subsidiary must be denominated in Singapore dollars or any currency approved by the Authority, and must be in ordinary shares.
(3B)
Any amount of paid-up capital or capital funds of a bank which is a qualifying subsidiary above the amount mentioned in subsection (1), or such other amount as may be prescribed by the Authority in substitution, may be denominated in any currency, and may be in any type of shares.
(4)
[Deleted by Act 1 of 2020]
(5)
Any bank which fails to comply with any requirement under subsection (3) or (3A) must immediately notify the Authority.
(6)
Where a bank fails to comply with any provision of this section or any condition imposed by the Authority under this section, the Authority may, without affecting subsection (6A), by written notice to the bank —
restrict or suspend the operations of the bank; or
give such directions to the bank as it considers appropriate and the bank must comply with such directions.
(6A)
Any bank which fails to comply with —
subsection (2), (3), (3A) or (5); or
any restriction or suspension imposed by the Authority, or any direction of the Authority, under subsection (6),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.
(7)
In this section, “paid-up capital” does not include any amount that is represented by treasury shares.