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(1) A bank or specialised deposit-taking institution shall establish and maintain a Reserve Fund into which shall be transferred out of net profits for each year

(a) where the amount of the Reserve Fund is less than fifty percent of the paid-up capital of the bank or specialised deposit-taking institution, an amount which is not less than fifty percent of the net profit for the year;

(b) where the amount of the Reserve Fund is fifty per cent or more but less than one hundred per cent of the paid-up capital of the bank  or  specialised  deposit-taking  institution,  an amount which is not less than twenty five per cent of the net profit for the year; or

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

(2) The transfer required under subsection (1) shall be made

(a) before the declaration of interim or final dividends, and

(b) after making provision for tax.

(3) A bank or specialised deposit-taking institution which fails to maintain a Reserve Fund in accordance with subsection (1), is liable to pay to the Bank of Ghana an administrative penalty of two thousand penalty units.