Regulatory Alerts2003-01-30
C8/03: Issue of certain capital instruments
The Registrar of Banks issued Circular 8/2003 to amend the Banks Act and Regulations regarding the issuance of non-redeemable non-cumulative preference shares. The new rules mandate that ordinary shares must constitute at least 80% of primary share capital, effectively capping preference shares at 20%, and adjust the primary to secondary capital ratio to 75:25. Banks are advised to align their capital expansion strategies with these constraints to ensure future preference share issues qualify as primary capital.
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