Regulatory Alerts2018-01-01
Financial Services (Prompt Corrective Action for Banks) Directive 2018
Issued by the Registrar of Financial Institutions under the Financial Services Act, this Directive establishes a structured framework for imposing prompt corrective actions on banks based on their Capital Adequacy Ratio. It mandates specific supervisory measures, such as restricting dividends, investments, and lending, while prescribing resolution powers that can suspend owner and management rights when necessary. The 2018 Directive supersedes the previous regulations by categorizing banks into undercapitalised, critically undercapitalised, and failed tiers to trigger tailored interventions.
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