Regulatory Alerts2013-11-26 | cba-blob-11551State Decree Stipulation of Equity SOSCS
The Aruban government issued this State Decree to define the calculation of equity for credit institutions under the Supervision of Credit Institutions Ordinance. It establishes a minimum equity requirement of Afl. 5 million and excludes intangible assets from the calculation while allowing the Central Bank to apply valuation corrections. The decree specifies distinct equity definitions for various legal structures, including public limited companies, cooperatives, and foreign branches, effective upon the entry into force of the parent Ordinance.
AB 1998 no. 21 CENTRAL LEGAL REGISTER 26 November 2013
==================================================================== Title: STATE DECREE containing general measures, for the implementation of Article 8, second paragraph, of the Land Ordinance on the supervision of the credit sector (AB 1998 no. 16) Citation title: State Decree on the determination of equity LTK Reference: AB 1998 no. 21 Amendments: AB 2008 no. 64 (in force 2008 no. 65)
Article 1
- For the purposes of Article 8, second paragraph, of the Land Ordinance on the supervision of the credit sector, equity is understood as: a. for a public limited company or a limited liability company, the paid-up capital, increased with the reserves; b. for a cooperative association, the deposit or capital paid in by the members, increased with the reserves; c. for a branch office of a credit institution established in Aruba of a credit institution established outside Aruba, the separate capital components made available to the branch office; d. for other legal forms under Aruban law than those mentioned in sub-paragraphs a through c, the favorable difference between assets and liabilities, calculated according to the valuation standards applicable when preparing the annual accounts referred to in Article 22, second paragraph, of the Land Ordinance on the supervision of the credit sector.
- Intangible assets are not included in the calculation of the amount of equity. The Bank may, if it deems it desirable, apply valuation corrections to the calculation of equity.
- For the purposes of the first paragraph, sub-paragraphs a and b, reserves are understood as those presented as such in the annual account referred to in Article 22, second paragraph, of the Land Ordinance on the supervision of the credit sector, including the share premium reserve. Article 2 The minimum amount of equity is Afl. 5 million (FIVE MILLION FLORIN). Article 3
- This State Decree enters into force on the day on which the Land Ordinance on the supervision of the credit sector enters into force.
- It may be cited as the State Decree on the determination of equity LTK.
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