Regulatory Alerts2018-01-15
Added · Updated
Proposed Amendments to the Banking Act
The Financial Services Commission proposes amendments to the Banking Act that exempt banks from ex-ante reporting for concurrent businesses registered or authorized under other legislation and remove investment limits on low-risk debt securities such as municipal bonds. Additionally, banks are required to accumulate at least ten percent of their cash dividends as an earned surplus reserve until the aggregate amount reaches half of their capital, in accordance with the Commercial Act. These proposed changes are open for public comment until February 25, 2018.
Laws and Regulations Announcement Amendments Proposed to the Banking Act Agency: Financial Services Commission Law to be amended: Banking Act FSC Notice number: 2018-12 Announcement date: January 15, 2018 Summary: The Financial Services Commission proposed amendments to the Banking Act that are intended to relax certain compliance and capital requirements and remove investment limit on certain classes of debt securities. Key provisions: Banks are to be exempt from ex-ante reporting for concurrent businesses that are registered, approved, or authorized pursuant to legislation other than the Banking Act. Investment limit on low-risk debt securities such as municipal bonds is to be removed. Banks are to accumulate at least ten percent of their cash dividend as an “earned surplus reserve” until the aggregate reserve amount reaches half of the capital as they are required under the Commercial Act. Public comment for the proposed amendments: The public comment period for the proposed amendments ends on February 25, 2018.