Section 10Part 1 — Banks and Trust Companies Act
Capital adequacy ratio
←→ Navigate · Click subsection badges to collapse · Press ? for help
A licensee holding a licence for the carrying on of banking business and incorporated under the Companies Act (2025 Revision) shall not, at any time, have a capital adequacy ratio of less than ten per cent (or such other percentage as may be determined by the Authority from time to time) as calculated in accordance with such form, content and manner as may be pre scribed.
The Authority may, if it considers it to be appropriate in the particular circumstances of a licensee incorporated under the Companies Act (2025 Revision) having regard to the risks arising from the activities of the licensee and such other fa ctors as the Authority considers relevant, vary the capital adequacy ratio applicable to that licensee. ( 2A ) The parent undertaking of a Cayman banking group, which may be a licensee, is required to ensure that capital requirements and other prudential mea sures that may be issued by the Authority are met on a consolidated basis by the Cayman banking group. ( 2B ) The parent undertaking of a Cayman banking group, which may be a licensee, shall be required to ensure that any prudential, supervisory or risk mana gement measures that may be issued by the Authority from time to time are met on a consolidated basis by the Cayman banking group.
Where a licensee or the parent undertaking of a Cayman banking group fails to comply with a requirement of this section, the licensee may, for the purpose of section 18 , be treated by the Authority as carrying on business in a manner detrimental to the public interest, the interest of its depositors or other creditors.