Clause 7

by deleting subsection (2) and substituting the following subsections:“(2) The Authority may, by notice in writing to any bank incorporated in Singapore or any class of banks incorporated in Singapore, impose capital adequacy requirements on them.(2A) Without limiting the generality of subsection (2), a notice under that subsection may prescribe —

the appropriate level (which may be expressed in the form of a ratio) and quality of capital that is commensurate with the type, amount and concentration of risk of the bank or class of banks;

the manner and process for calculating the level or quality of capital of each bank;

the internal processes of each bank in assessing the adequacy of its level and quality of capital, having regard to the risks arising from the activities of the bank and such other factors as the Authority considers relevant;

the reports to be submitted by each bank; and

restrictions on the distributions by a bank of dividends, bonuses, commissions, payments as a result of a buyback of shares, and any other payment, in the event that it fails to maintain the level or quality of capital prescribed under paragraph (a).”;

by deleting the words “the capital adequacy ratio applicable to that bank” in subsection (3) and substituting the words “any capital adequacy requirement imposed by a notice under subsection (2) on that bank”; and

by deleting subsection (4) and substituting the following subsections:“(4) Without prejudice to subsection (5), the Authority may restrict or suspend the operations of a bank which fails to comply with a notice under subsection (1) or (2).(5) A bank which fails to comply with —

a notice under subsection (1) or (2); or

any restriction or suspension imposed by the Authority under subsection (4),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.”.