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Requirements
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(a) | minimum capital adequacy ratio |
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(i) | 6 percent of total assets held by co-operative bank. |
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(b) | loan loss provision for delinquent loans |
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(i) | 2 percent in respect of all loans in addition to the minimum capital adequacy ratio; plus |
(ii) | 35 percent in respect of all loans delinquent for a period of 1 month but not longer than 6 months; plus |
(iii) | 50 percent in respect of all loans delinquent for a period of longer than 6 months but not longer than 12 months; plus |
(iv) | 100 percent in respect of all loans delinquent for a period of longer 12 months. |
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(i) | a maximum of 5 percent of total assets may be held in fixed and non-earning assets |
(ii) | a minimum of 10 percent of total deposits must be held in investments referred to in regulation 3.2 with a tenure not exceeding 32 days and convertible into cash at any time, without incurring any penalty or being subject to a discount rate substantially higher than the average rate that applies to liquid assets with a similar term; |
(iii) | a minimum of 2,5 percent of total deposits must be deposited with the Agency or a higher tier co-operative bank, in addition to the deposits referred to in paragraph 4(c)(ii); |
(iv) | the balance of deposits not held or deposited in accordance with paragraphs 4(c)(ii) and 4(c)(iii)— |
(i) | in relation to a co-operative bank that provides saving services only, must be held in investments referred to in regulation 3.2(a)(i) to (v); and |
(ii) | in relation to a co-operative bank that provides saving and loan services, must be held in investments referred to in regulation 3.2(a)(i) to (v) and may be granted as loans up to a maximum of 80 percent of total assets |
(v) | In relation to a co-operative bank that provides saving and loan services, loans granted to members that are sourced from cash donations may not exceed 15 percent of total deposits. |
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(i) | Hold no deposit from anyone member or related person, which deposit, alone or together with all existing deposits received from that member or related person, i exceeds the lesser of 10 percent of the total assets held by or 25 percent of the capital of the co-operative bank. |
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