—(1) Subject to this Act, a bank shall not be granted or hold a licence unless —
in the case of a bank incorporated in Singapore, its paid-up capital is not less than $1,500 million or such other amount as may be prescribed, and its capital funds are not less than that amount; or
in the case of a bank incorporated outside Singapore its head office capital funds are not less than the equivalent of $200 million.
[28/93; 21/96; 23/2001; 1/2007]
(2) A bank incorporated outside Singapore which holds a licence to carry on banking business in Singapore on 8th October 1993 shall be exempt from subsection (1)(b).
(3) A bank incorporated in Singapore shall not reduce its paid-up capital, or purchase or otherwise acquire shares issued by the bank if such shares are to be held as treasury shares, without the approval of the Authority.
(4) Any bank which fails to comply with any requirement under subsection (1) shall immediately notify the Authority.
(5) Where a bank fails to comply with any provision of this section, the Authority may, without prejudice to section 71, by notice in writing to the bank —
restrict or suspend the operations of the bank; or
give such directions to the bank as the Authority considers appropriate, and the bank shall comply with such directions.
(6) In this section —
“head office capital funds”, in relation to a bank incorporated outside Singapore, means the aggregate of its paid-up capital (or its equivalent recognised by the Authority as applicable to the bank under the laws of the country or territory in which the bank is incorporated, formed or established) and its published reserves (excluding such reserves as the Authority may specify in writing), deduction having been made for any loss appearing in the accounts of the bank;
“paid-up capital” does not include any amount that is represented by treasury shares.