Banks Act, 1990 (Act No. 94 of 1990)Chapter VI : Prudential Requirements72. Minimum liquid assets |
| (1) | A bank shall hold in the Republic level one high-quality liquid assets to a value which does not amount to less than the sum of amounts, calculated as prescribed percentages, but which in no instance may exceed 20 per cent, of such different categories of its liabilities as may be specified by regulation with reference to the time when such liabilities fall due or with reference to any other aspect pertaining to such liabilities. |
| (2) | The amounts of the level one high-quality liquid assets and of the liabilities referred to in subsection (1) shall be calculated in such manner and be determined at such times as may be prescribed. |
| (3) | A bank shall not pledge or otherwise encumber any portion of the level one high-quality liquid assets held by it in compliance with the provisions of subsection (1): Provided that the Authority may, exempt a bank from the prohibition contained in this subsection on such conditions and to such an extent and for such a period as the Authority may determine. |
| (4) | For the purposes of this section securities which constitute “level one high-quality liquid assets” as defined in section 1 shall be valued as prescribed. |
[Section 72 substituted by section 40 of Act No. 22 of 2013]