Regulatory Alerts2016-11-06
Added · Updated
Central Bank Memorandum No. 2004/4: Corrective Actions and Penalties for Bank Violations
The Central Bank mandates corrective actions and penalties for banks violating laws, engaging in unsafe practices, or deteriorating in CAMEL/ROCA ratings or capital adequacy. Financial penalties are imposed for violations, while banks rated 3 under CAMEL/ROCA must submit phased corrective plans. Banks classified as Undercapitalized must submit a Capital Restoration Plan within 45 days and face restrictions on dividends and growth. Critically undercapitalized banks face mandatory merger or license revocation within 270 days, with a possible 270-day extension under specific conditions.
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