Section 8Part 1 — Banks and Trust Companies Act
Net worth requirements
←→ Navigate · Click subsection badges to collapse · Press ? for help
Except in the case of a Restricted “B” licence, or a Restricted Trust licence, or a Nominee (Trust) licence, a licence shall not be granted to a bank or trust company unless it has a net worth of not le ss than four hundred thousand dollars or its equivalent in other currencies, or such greater sum as may be determined by the Authority.
A Restricted “B” licence or a Restricted Trust licence shall not be granted to a bank or trust company unless it has a net worth of not less than twenty thousand dollars or its equivalent in other currencies, or such greater sum as may be determined by the Authority.
A Nominee (Trust) licence shall not be granted to a trust company unless such trust company furnishe s a guarantee from the licensee of which it is a wholly - owned subsidiary for liabilities of up to two hundred thousand dollars or its equivalent in other currencies, or such greater sum as may be determined by the Authority.
When the Authority has reas onable cause to believe that there are grounds for doing so, the Authority may require a licensee to increase its net worth by increasing its paid - up capital to such greater sum as the Authority may determine for the nature of the banking business or trust business, current or proposed.
A licensee shall at all times maintain the net worth required by this section unless exempted by the Authority.
The parent undertaking of a Cayman banking group is required to ensure that the net worth stipulated in this section, or such higher net worth as the Authority may direct, is maintained both in respect of the licensee on a solo basis and on a consolidated basis taking into account all the entities in the Cayman banking group.