On 24/05/2013,
you requested for the version in force on 24/05/2013
incorporating all amendments published on or before 24/05/2013.
The closest version currently available is that of 15/03/1994.
PART IV
RESERVE FUNDS, DIVIDENDS, BALANCE-SHEETS AND INFORMATION
22.
—(1) Every licensed bank shall —
(a)
maintain a reserve fund; and
(b)
transfer to that reserve fund out of the net profits of each year, after due provision has been made for taxation —
(i)
so long as the amount of the reserve fund is less than 50% of the paid-up capital, a sum not less than 50% of those net profits;
(ii)
so long as the amount of the reserve fund is 50% but less than 100% of the paid-up capital, a sum not less than 25% of those net profits; and
(iii)
so long as the amount of the reserve fund is 100% or more of the paid-up capital, a sum not less than 5% of those net profits.
(2) If the Authority is satisfied that the aggregate reserve fund of a licensed bank whose head office is situated outside Singapore is adequate for its business, the Authority may, by order in writing, exempt that bank from subsection (1).
(3) Any bank which fails to comply with subsection (1) shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $20,000 and, in the case of a continuing offence, to a further fine of $2,000 for every day during which the offence continues after conviction.
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23. Every bank shall make provision for bad and doubtful debts and before any profit or loss is declared ensure that that provision is adequate.
24. A bank shall not pay any dividend on its shares until all its capitalised expenditure (including preliminary expenses, organisation expenses, share selling commission, brokerage, amount of losses and any item of expenditure not represented by tangible assets) has been completely written off.
25.
—(1) Every bank shall exhibit in a conspicuous position in each of its offices and branches in Singapore —
(a)
a copy of its latest audited annual balance-sheet and profit and loss account, together with any notes thereon, and a copy of the report of the auditors, except that in the case of a bank incorporated outside Singapore, those statements may be made in a manner that complies with the law for the time being applicable in the place of its incorporation or origin;
(b)
the full and correct names of all persons who are directors for the time being of the bank; and
(c)
the names of all subsidiary companies for the time being of the bank.
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(2) Every bank shall, within 6 months after the close of each financial year or within such period as the Authority may approve, publish in such newspaper or newspapers as may be prescribed by regulations a copy of its latest audited annual balance-sheet and profit and loss account containing at least such information as the Authority may require by notice in writing, except that in the case of a bank incorporated outside Singapore those statements may be made in a manner that complies with the law for the time being applicable in the place of its incorporation or origin.
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(3) The Authority may by notice in writing require a bank to publish in addition to its balance-sheet and profit and loss account under subsection (2) such additional information relating to the accounts of that bank for any financial year as the Authority thinks fit.
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(4) A copy of each of the documents referred to in subsections (1) and (2) shall be sent to the Authority by the bank, prior to the first publication thereof under that subsection, together with a copy of the directors’ report.
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(5) In addition to the balance-sheet and other documents required to be lodged with the Authority under subsection (4), every bank shall lodge with the Authority with that balance-sheet and other documents a duly audited balance-sheet showing its assets used in, and liabilities arising out of its operation in, Singapore as at the date to which its balance-sheet was made up and a duly audited profit and loss account which gives a true and fair view of the profit or loss arising out of the bank’s operation in Singapore for the last preceding financial year of the bank:
Provided that the bank shall be entitled to make such apportionments of expenses incurred in connection with operations or administration affecting both Singapore and elsewhere and to add such notes and explanations as in its opinion are necessary or desirable in order to give a true and fair view of the profit or loss of its operations in Singapore.
(6) The Authority may, in its discretion, regard the balance-sheet and profit and loss account as having been duly audited for the purpose of subsection (5) if the balance-sheet and profit and loss account are accompanied by a report by an approved auditor which complies, insofar as it is practicable, with section 207 of the Companies Act [Cap. 50].
(7) (a) In the case of a bank incorporated in Singapore —
(i)
the annual balance-sheet and profit and loss account of the bank referred to in subsections (1) and (2);
(ii)
the balance-sheet and profit and loss account referred to in subsection (5); and
(iii)
the half year interim profit and loss account of the bank,
shall be in such form as the Authority may approve.
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(b)
In the case of a bank incorporated outside Singapore, only the balance-sheet and profit and loss account referred to in subsection (5) shall be in such form as the Authority may approve.
(8) The Authority may require any bank to submit such further or additional information as it may consider necessary either by way of explanation, amplification or otherwise with regard to the balance-sheets and profit and loss accounts sent by that bank under subsections (4) and (5) and that information shall be submitted within such period and in such manner as the Authority may require.
(9) Any bank which fails to comply with this section shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $5,000 and, in the case of a continuing offence, to a further fine of $1,000 for every day during which the offence continues after conviction.
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26.
—(1) Every bank shall furnish to the Authority at such time and in such manner as the Authority may prescribe all such information (including returns) as the Authority may reasonably require for the proper discharge of its functions.
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(2) Every bank shall send to the Authority —
(a)
not later than 10 days after the last day of each month a statement in the form set out in the First Schedule showing the assets and liabilities of its banking offices and branches in Singapore at the close of business on the last business day of the preceding month;
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(b)
not later than one month after the last day of each quarter of a calendar year, a statement in the form set out in the Second Schedule giving an analysis of loans and advances of its banking offices and branches in Singapore as at 31st March, 30th June, 30th September and 31st December, respectively; and
(c)
not later than 6 months after the close of its financial year a statement in the form set out in the Third Schedule showing the income and expenditure in respect of its banking business in Singapore.
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(3) The Authority may vary or amend the forms set out in the First, Second and Third Schedules.
(4) The Authority may require any statement submitted to it pursuant to subsections (1) and (2) to be accompanied by a certificate —
(a)
of the auditor appointed by the bank pursuant to section 58(1); or
(b)
of any other auditor appointed by the Authority pursuant to section 58(3),
as to whether in the opinion of the auditor, the statement or information is correct.
(5) Any information received from a bank under this section shall be regarded as secret between that bank and the Authority.
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(6) Nothing in this section shall prevent the Authority from preparing and publishing consolidated statements aggregating such information as may be furnished under this section.
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(7) Any bank which fails or neglects to furnish any information required by the Authority under this section shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $20,000 and, in the case of a continuing offence, to a further fine of $2,000 for every day during which the offence continues after conviction.
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27.
—(1) Every bank shall send to the Authority not later than 15 days after the last day of each month a statement in the form to be prescribed by the Authority showing particulars of all advances, loans or credit facilities granted by it to —
(a)
any of its directors;
(b)
any firm in which the bank or any of its directors is a partner, manager or agent, or to any individual or firm of whom or of which any of its directors is a guarantor;
(c)
any corporation that is deemed to be related to the bank as described in section 6 of the Companies Act [Cap. 50];
(d)
any of its officers, employees or other persons being persons receiving remuneration from the bank in excess of one year’s remuneration of the officer, employee or person;
(e)
any private or public company in which the bank or any of its directors, officers, employees or other persons who receive remuneration from the company has an interest as a director, manager, agent or guarantor; or
(f)
any individual in whom, and any firm or company in which, any of its directors has an interest, directly or indirectly, as declared under section 28 other than the advances, loans and credit facilities, particulars of which have already been supplied pursuant to paragraphs (a) to (e).
(2) If, on examination of the particulars supplied by a bank under subsection (1) it appears to the Authority that any such advances, loans or credit facilities are being granted to the detriment of the interests of the depositors of that bank, the Authority may by order in writing prohibit that bank from granting any further advances, loans or credit facilities or impose such restrictions on the grant thereof as the Authority thinks fit, and may further direct that bank to secure repayment of any such first-mentioned advances, loans or credit facilities within such time and to such extent as may be specified in the order.
(3) In this section, “director” includes the wife, husband, father, mother, son or daughter of a director.
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28.
—(1) Every director of a bank who has in any manner whatsoever, directly or indirectly, an interest in an advance, loan or credit facility or proposed advance, loan or credit facility from that bank shall as soon as practicable declare the nature of his interest to the board of directors of that bank and the secretary of that bank shall cause the declaration to be circulated forthwith to all the directors.
(2) The requirements of subsection (1) shall not apply in any case where the interest of the director consists only of being a member or creditor of a company which is interested in an advance, loan or credit facility or proposed advance, loan or credit facility from that bank if the interest of the director may properly be regarded as of a trivial nature.
(3) For the purposes of subsection (1), a general notice given to the board of directors of a bank by a director to the effect that he is an officer or member of a specified company or a member of a specified firm and he is to be regarded as having an interest in any advance, loan or credit facility which may, after the date of the notice, be made to that company or firm shall be deemed to be a sufficient declaration of interest in relation to any advance, loan or credit facility so made if —
(a)
it specifies the nature and extent of his interest in the particular company or firm;
(b)
his interest is not different in nature or greater in extent than the nature and extent so specified in the notice at the time any advance, loan or credit facility is made; and
(c)
it is given at the meeting of the directors or the director takes reasonable steps to ensure that it is brought up and read at the next meeting of the directors after it is given.
(4) Every director of a bank who holds any office or possesses any property whereby, directly or indirectly, duties or interest might be created in conflict with his duties or interest as director shall declare at a meeting of the directors of that bank the fact and the nature, character and extent of the conflict.
(5) The declaration referred to in subsection (4) shall be made at the first meeting of the directors held —
(a)
after he becomes a director of the bank; or
(b)
if already a director, after he commences to hold the office or to possess the property, as the case may be.
(6) The secretary of that bank shall cause to be brought up and read any declaration made under subsection (1) or (4) at the next meeting of the directors after it is given, and shall record any declaration made under this section in the minutes of the meeting at which it was made or at which it was brought up and read.
(7) Any director who acts in contravention of subsection (1) or (4) shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $50,000 or to imprisonment for a term not exceeding 3 years or to both.
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