Clause 11

Notwithstanding section 9, a company incorporated in Singapore which is a qualifying subsidiary may be granted and hold a licence under section 7 or 11 if —

it is and continues to be a qualifying subsidiary; and

its issued and paid-up capital is not less than $100 million.(2) A bank which is a qualifying subsidiary shall not, during the currency of its licence, reduce its paid-up capital without the approval of the Authority.(3) A bank which is a qualifying subsidiary shall, during the currency of its licence, maintain capital funds of not less than $100 million unless the Authority approves otherwise.(4) The Authority may, in its discretion, on application by any bank, exempt that bank from subsection (1)(a) subject to such conditions as the Authority may impose, and in such event, the other provisions of this section shall continue to apply to that bank notwithstanding that it may no longer be a qualifying subsidiary.(5) Any bank which fails to comply with any requirement under subsection (1) shall forthwith 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 prejudice to section 71, by notice in writing 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 shall comply with such directions.(7) A bank which is a qualifying subsidiary on the appointed day and holds a licence granted or held under section 7, 11 or 79 before the appointed day shall be exempt from subsection (1)(b) for the period commencing on the appointed day and ending on 17th July 2001.”.