• 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 2014

      • CA-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 2014

    • Capital 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 2014

      • CA-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 2014

      • CA-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 the shareholders, 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 2014

      • CA-1.1.5A

        For the purpose of Paragraph CA-1.1.4, the asset items must be risk weighted as follows:

        (a) Cash and treasury bills in BD or in US$: 0%;
        (b) Claims on banks (See CA-1.1.5B);
        (c) Microfinance credit facilities: 75%;
        (d) Investments: 100%; and
        (e) Other assets: 100%.
        Added: January 2019

    • Claims 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 2019

      • CA-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 2019

      • CA-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 the licensee 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, the licensee must:

        (a) Provide to the CBB, within one week of the non-compliance, a written action plan setting out how the licensee 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, the licensee'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 2014

      • CA-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 a licensee which breaches its minimum CAR requirement to a formal enforcement action.

        Amended: January 2019
        January 2014

    • Deleted

    • 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 2014

    • Reporting 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