Singapore legislation

Clause 18

of Banking Bill

Clause 18

Maintenance of reserve fund

(1)

Every licensed bank —

(a)

shall maintain a reserve fund; and

(b)

shall transfer to such reserve fund out of the net profits of each year, after due provision has been made for taxation —

(i)

so long as the amount of the reserve fund is less than fifty per centum of the paid-up capital, a sum not less than fifty per centum of such net profits;

(ii)

so long as the amount of the reserve fund is fifty per centum but less than one hundred per centum of the paid-up capital, a sum not less than twenty-five per centum of such net profits; and

(iii)

so long as the amount of the reserve fund is one hundred per centum or more of the paid-up capital, a sum not less than five per centum of such net profits.

(2)

If the Commissioner is satisfied that the aggregate reserve fund of a licensed bank whose head office is situated outside Singapore is adequate for its business, he may, by order in writing, exempt such bank from the provisions of subsection (1) of this section.

(3)

Any bank which fails to comply with the provisions of subsection (1) of this section shall be guilty of an offence under this Act and shall be liable on conviction to a fine not exceeding ten thousand dollars.

Read in full context — Banking Bill →