CA-1.1 CA-1.1 Capital Requirements
Minimum Capital Requirement
CA-1.1.1
A
licensee must maintain at all times a minimum paid-up capital of BD 2 million provided by the shareholders/promoters and/or through grants and donations. A greater amount of capital may be required by the CBB on a case-by-case basis.Amended: April 2019
January 2014CA-1.1.2
In addition to the requirements of Paragraph CA-1.1.1, the CBB may require that an acceptably worded letter of guarantee be provided. The CBB may seek a letter of guarantee from
controllers .January 2014Capital Adequacy Ratio (CAR)
CA-1.1.3
In addition to the requirements outlined in Paragraphs CA-1.1.1 and CA-1.2.1, all
licensees must maintain a minimum Capital Adequacy Ratio of 12%.Amended: January 2019
January 2014CA-1.1.4
For purposes of Paragraph CA-1.1.3, the capital adequacy ratio is defined as the total core capital divided by the risk weighted assets.
Amended: January 2019
Amended: October 2014
January 2014CA-1.1.5
For purposes of Paragraph CA-1.1.4, total core capital refers to:
(a) Issued and fully paid ordinary shares (net of treasury shares);(b) Retained earnings (losses) brought forward, including interim profits/losses; and(c) All disclosed reserves brought forward, that are audited and approved by theshareholders , in the form of legal, general and other reserves created by appropriations of retained earnings;LESS:(d) Other deductions, as specified by the CBB.Amended: October 2014
January 2014Claims on Banks
CA-1.1.5B
Claims on banks must be risk weighted as given in the following table. No claim on an unrated bank may receive a risk weight lower than that applied to claims on its sovereign of incorporation.
Banks Credit Quality Grades AAA to AA- A+ to A- BBB+ to BBB- BB+ to B- Below B- Un-rated ECAI 1 ECAI 2 ECAI 3 ECAI 4 ECAI 5 - Standard risk weights 20% 50% 50% 100% 150% 50% Added: January 2019CA-1.1.5C
Short-term claims on locally incorporated banks may be assigned a risk weighting of 20% where such claims on the banks are of an original maturity of 3 months or less denominated and funded in either BD or US dollar.
Added: January 2019CA-1.1.6
Licensees must ensure that at all times they maintain the minimum CAR outlined in Paragraph CA-1.1.3. In the event that thelicensee does not comply with the minimum CAR requirement, it must notify the CBB by no later than the following business day of the actual level of the CAR. When providing such notification, thelicensee must:(a) Provide to the CBB, within one week of the non-compliance, a written action plan setting out how thelicensee proposes to restore its CAR to the required minimum level and describe the systems and controls that have been put in place to prevent any future non-compliance of the minimum CAR; and(b) Report to the CBB on a monthly basis or on another timely basis as required by the CBB, thelicensee's CAR until such time as the CAR has reached 12.5% or other target level as specified by the CBB.Amended: January 2019
January 2014CA-1.1.7
Licensees should note that the CBB considers the breach of the minimum CAR requirement to be a very serious matter. Consequently, the CBB may (at its discretion) subject alicensee which breaches its minimum CAR requirement to a formal enforcement action.Amended: January 2019
January 2014Deleted
Compliance Officer
CA-1.1.8
Compliance officers must ensure that the
licensee has adequate internal systems and controls to comply with this Module.Amended: January 2019
January 2014Reporting Requirements
CA-1.1.9
The
licensee must report its capital level and CAR to the CBB in accordance with the requirements outlined in Chapter BR-1.Amended: January 2019
January 2014