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(1) A bank shall maintain a Reserve Fund into which shall be transferred out of the bank's net profits for each year, before the bank declares a dividend and after it has made provision for any taxes, the following amounts:

(a) where the amount of the bank's Reserve Fund is less than fifty per cent of its paid-up capital, an amount which is not less than fifty per cent of the bank's net profit for the year;

(b) where the amount of the bank's Reserve Fund is fifty per cent or more but less than hundred per cent of its paid up capital, an amount which is not less than twenty five per cent of the bank's net profit for the year; or

(c) where the amount of the bank's Reserve Fund is equal to one hundred per cent or more of its paid-up capital, an amount equal to twelve and half per cent of the bank's net profit for the year.

(2) A bank which fails to maintain a Reserve Fund in accordance with subsection (1) commits an offence and is liable on summary conviction to a fine not exceeding 1000 penalty units.