Statute Update NOTICE (under section 2) The Banking (Prescribed Liabilities) Notice, 1992 L.N. 85/92 ORDER (under section 2) The Bank of Jamaica (Fixed Penalty) (Prescribed Provisions) Order, 1996 L.N. 155¹A/96 Schedule (Paragraph 2) Schedule ORDER (under section 13 (5)) The Banking (C.I.B.C. Jamaica Limited) (Limit on Credit Facilities) Order, 1992 L.N. 75/92 [For subsequent Orders, please see the Guide to Subsidiary Legislation.] NOTICE (under section 14 (4)) The Banking (Cash Reserve) (Rate of Interest) (Jamaican Dollar Liabilities) Notice, 1995 L.N. 148E/95 The Banking (Cash Reserve) (Rate of Interest) (Foreign Currency Liabilities) Notice, 1995 L.N. 148F/95 ORDER (under section 15 (2) (h)) The Banking (Financial Institutions Services Limited) (FIS Series A United States Dollar Bonds and FIS Series B Jamaican Dollar Bonds) Order, 1997 L.N. 129D/97 NOTIFICATION (under section 15 (2) (h)) The Banking (Liquid Assets) (Additional Items) Notification, 1996L.N. 33A/96 NOTICE (under section 15 (3)) The Banking (Liquid Assets) (Rate of Interest) (Jamaican Dollar Liabilities) Notice, 1995L.N. 148G/95 The Banking (Liquid Assets) (Rate of Interest) (Foreign Currency Liabilities) Notice, 1995 L.N. 148H/95 ORDER (under section 25B(1)) - (Omitted) REGULATIONS (under section 33(2))
The Banking (Amalgamation and Transfers) Regulations, 1997 L.N. 12C/975D/98 ORDER (under section 35) (Omitted) ORDER (under section 36 (1)) The NCB Trust and Merchant Bank Limited (Transfer to and Vesting of Assets and Liabilities comprising the trust business of National Commercial Bank Limited) Vesting Order, 1996 L.N. 154A¹/96 Schedule [For subsequent Orders, please see the Guide to Subsidiary Legislation.] REGULATIONS (under section 38) The Banking (Hours of Opening) Regulations, 1992 L.N. 79/92 The Banking (Exemption from Companies Act) Regulations, 1992 L.N. 80/92 The Banking (Establishment of Branches) Regulations, 1997 L.N. 12A/97 Schedule The Banking (Capital Base) Regulations, 1997 L.N. 137/97 The Banking (Days of Closure) (December 31, 1999 and January 3, 2000) Regulations, 1999 L.N. 123A/99 THE BANKING (PRESCRIBED LIABILITIES) NOTICE, 1992 (Made by the Bank of Jamaica on the 31st day of December, 1992) 1. This Notice may be cited as the Banking (Prescribed Liabilities) Notice, 1992. 2. The following liabilities of a bank are hereby specified as prescribed liabilities, viz.: - (i) deposit liabilities; (ii) interest accrued and payable on deposit liabilities; and (iii) balances owing by the bank (inclusive of interest) in respect of any borrowings made by it, except such borrowings as may be specifically exempted from time to time. THE BANK OF JAMAICA (FIXED PENALTY) (PRESCRIBED PROVISIONS) ORDER, 1996
(Made by the Minister on the 29th day of October, 1996) 1. This Order may be cited as the Bank of Jamaica (Fixed Penalty) (Prescribed Provisions) Order, 1996. 2. (1) The Notice required by subsection (2) of section 22E of the Act offering to any person referred to in subsection (1) (a) of that section (hereinafter called the offender) discharge from liability by the payment of a fixed penalty shall be in the form set out in the Schedule hereto and shall be issued to the offender in triplicate. (2) The first copy of the Notice shad be retained by the offender, the second copy and the third copy (which shall be headed "For the Governor of the Bank of Jamaica") shall be submitted to the Collector of Taxes to whom payment of the fixed penalty is to be made (namely the Collector of Taxes for the parish in which the offence was committed or such other Collector of Taxes as may be specified in the Notice). 3. In any specific case, the particulars stated in the Notice issued under paragraph 2 shall constitute the information required to be furnished to the Collector of Taxes along with payment of the fixed penalty. 4. The Collector of Taxes shall note on the third copy of the Notice that payment of the fixed penalty has been received and the date of such payment, and within 7 days of payment shall transmit that copy to the Governor, by registered post. SCHEDULE (Paragraph 2) THE BANK OF JAMAICA ACT Notice under section 22E to Operator of an Exchange Bureau in respect of Offence under Part IVA TO: (Operator of Bureau) ADDRESS: YOU ARE HEREBY NOTIFIED as follows: 1. The Director of Public Prosecutions is of the opinion that you, being a person who with the approval of the Minister of Finance operates an exchange bureau, have committed an offence under Part IVA of the Bank of Jamaica Act, (the Act) being the offence specified in the Schedule hereto (the said offence). 2. You are liable to have criminal proceedings taken against you in respect of the said offence and if convicted of the said offence you will be liable to a fine, forfeiture and term of imprisonment as specified in subsections (1) and (2) of section 22D of the Act.
3. Notwithstanding your liability to conviction for the said offence, the Governor of the Bank of Jamaica, with the approval of the Director of Public Prosecutions, hereby offers you the opportunity to discharge such liability by payment of a fixed penalty in the amount set out in the Schedule hereto, before the expiration of the period ending on the date set out in the said Schedule. If the fixed penalty is duly paid, then no proceedings will be taken against you in respect of the said offence. 4. The fixed penalty shall be paid to the Collector of Taxes specified in the Schedule hereto. SCHEDULE Offence: Particulars of Offence: Fixed Penalty: Final Date for payment of Fixed Penalty: Collector of Taxes to Whom Fixed Penalty is payable: Governor, Bank of Jamaica THE BANKING (C.I.B.C. JAMAICA LIMITED) (LIMIT ON CREDIT FACILITIES) ORDER, 1992 (Made by the Minister on the 31st day of December, 1992) 1. This Order may be cited as the Banking (C.I.B.C. Jamaica Limited) (Limit on Credit Facilities) Order, 1992. 2. (1) Notwithstanding the provisions of paragraph (f) of subsection (1) of section 13 of the Act, the bank may, subject to subparagraphs (2) and (3) hereof, grant credit facilities to any one person or to any group in excess of any limit imposed by or pursuant to paragraph (f) aforesaid. (2) The bank shall not grant credit facilities pursuant to subparagraph (1) (a) unless the credit facilities are granted in accordance with the terms of the guarantee given, by agreement dated the 13th day of September, 1976, to the bank by the Canadian Imperial Bank of Commerce; and (b) if the aggregate of the money outstanding in respect of credit facilities granted to any one person or to any group exceed the lesser of - (i) the limit which would be applicable by or pursuant to paragraph (f) of subsection (1) of
section 13 of the Act if the paidup capital and reserve fund of Canadian Imperial Bank of Commerce were treated as part of the paidup capital and reserve fund of the bank; or (ii) the amount of forty-five million dollars. (3) If without the approval of the Minister in writing there is any change in the terms of the guarantee referred to in subparagraph (2) (a) the provisions of this Order shall cease to have effect but without prejudice to any transaction made by virtue of the provisions thereof prior to the date of such change. THE BANKING (CASH RESERVE) (RATE OF INTEREST) (JAMAICAN DOLLAR LIABILITIES) NOTICE, 1995 (Made by the Bank of Jamaica on the 7th day of December, 1995) 1. This Notice may be cited as the Banking (Cash Reserve) (Rate of Interest) (Jamaican Dollar Liabilities) Notice, 1995. 2. For the purposes of the provisions of subsection (4) of section 14 of the Act, an interest rate of sixty-five per centum per annum is hereby approved in respect of liabilities payable in Jamaican dollars. THE BANKING (CASH RESERVE) (RATE OF INTEREST) (FOREIGN CURRENCY LIABILITIES) NOTICE, 1995 (Made by the Bank of Jamaica on the 7th day of December, 1995) 1. This Notice may be cited as the Banking (Cash Reserve)(Rate of Interest) (Foreign Currency Liabilities) Notice, 1995. 2. For the purposes of the provisions of subsection (4) of section 14 of the Act, an interest rate of twenty per centum per annum is hereby approve in respect of liabilities payable in foreign currency. THE BANKING (FINANCIAL INSTITUTIONS SERVICES LIMITED) (FIS SERIES A UNITED STATES DOLLAR BONDS AND FIS SERIES B JAMAICAN DOLLAR BONDS) ORDER, 1997 (Made by the Minister on the 11th day of November, 1997) 1. This Order may be cited as the Banking (Financial Institutions Services Limited) (FIS Series A United States Dollar Bonds and FIS Series B Jamaican Dollar Bonds) Order, 1997.
2. The FIS Series A United States Dollar Bonds and the FIS Series B Jamaican Dollar Bonds are hereby designated "Liquid Assets" as that term is used in section 15 of the Banking Act. THE BANKING (LIQUID ASSETS) (ADDITIONAL ITEMS) NOTIFICATION, 1996 (Made by the Minister on the 8th day of March, 1996) 1. This Notification may be cited as the Banking (Liquid Assets) (Additional Items) Notification, 1996. 2. (1) For the purposes of subsection (2) of section 15 of the Act, it is hereby determined that in addition to the items specified in that subsection, "liquid assets", in respect of liabilities payable in foreign currency, includes- (a) shortterm securities issued or guaranteed by the Government of the United States of America, Canada or the United Kingdom; (b) shortterm United States dollar, Canadian dollar or United Kingdom Pound Sterling deposits with foreign banks or foreign financial institutions rated as either ( 'A-1' or 'A-2' by Standard and Poor's Corporation or 'Prime-1' or 'Prime-2' by Moody's Investors Service; (c) foreign currency notes and coins; (d) such bonds, issued by the Government of Jamaica and denominated in foreign currency, as are specifically determined by the Minister to be liquid assets for the purposes of section 15 (2) of the Act; (e) foreign currency balances held with authorized dealers after deduction of amounts held for those dealers: Provided that only so much of the net amount shall be taken into account as does not exceed two per cent of the average of prescribed liabilities determined under subsection (4) of section 15 of the Act, or such other percentage as the Minister may from time to time determine. (2) For the purposes of clauses (a) and (b) of subparagraph (1) "short-term" in relation to a security or deposit refers to a security or deposit, as the case may be, the maturity date of which will occur within a period not exceeding nine months. THE BANKING (LIQUID ASSETS) (RATE OF INTEREST) (JAMAICAN DOLLAR LIABILITIES) NOTICE, 1995 (Made by the Bank of Jamaica on the 7th day of January, 1995) 1. This Notice may be cited as the Banking Act (Liquid Assets) (Rate of Interest) (Jamaican
Dollar Liabilities) Notice, 1995. 2. For the purposes of the provisions of subsection (3) of section 15 of the Act, an interest rate of sixty-five per centum per annum is hereby approved in respect of liabilities payable in Jamaican dollars. THE BANKING (LIQUID ASSETS) (RATE OF INTEREST) (FOREIGN CURRENCY LIABILITIES) NOTICE, 1995 (Made by the Bank of Jamaica on the 7th day of December, 1995) 1. This Notice may be cited as the Banking (Liquid Assets) (Rate of Interest) Foreign Currency Liabilities) Notice, 1995 2 For the purposes of the provisions of subsection (3) of section 15 of the Act, an interest rate of twenty per centum per annum is hereby approved in respect of liabilities payable in foreign currency. THE BANKING (AMALGAMATION AND TRANSFERS) REGULATIONS, 1997 (Made by the Minister on the 28th day of January, 1997) 1. These Regulations may be cited as the Banking (Amalgamation and Transfers) Regulations, 1997 2. In these Regulations "bank" has the same meaning as in the Banking Act; "holding company" has the same meaning as in the Companies Act; "licence" means a licence granted under the Banking Act or the Financial Institutions Act, as the case may require; "licence" means a company duly licensed under the Financial Institutions Act; "subsidiary" has the same meaning as in the Companies Act. Amalgamation 3. Where two or more banks or, as the case may be, one or more banks and one or more licensees, propose to amalgamate as a bank, a joint application shall be submitted to the Minister, setting out the scheme of the proposed amalgamation and accompanied by the
proposed amalgamation agreement setting out the terms and mode of effecting the amalgamation, and in particular - (a) the proposed name of the amalgamated bank and its proposed registered office; (b) the names of the proposed directors of the amalgamated bank; (c) the manner in which the shares of each applicant are to be converted into shares or stock or the amalgamated bank; (d) the manner in which any payments are to be made to any dissenting shareholders of an applicant; (e) the proposed memorandum and articles of association of the amalgamated bank; (f) details of any other matter necessary to perfect the amalgamation and relevant to the proposed operation of the amalgamated bank; (g) the proposed effective date of the amalgamation. 4. With respect to such conversion of shares or stock, and such payment to dissenting shareholders as are contemplated by paragraphs (c) and (d) of regulation 3, respectively, there shall be no repayment of capital. 5. On the approval by the Minister of an application for amalgamation the existing licence of each applicant shall be deemed to be cancelled. 6. The application for amalgamation shall be deemed to be a first application for a licence for the amalgamated licensee, and accordingly, the provisions of section 4 of the Financial Institution Act shall apply to such application. 7. If the shares of one of the applicant are held by or on behalf of another of the applicants, other than shares held in the capacity of a personal representative or by way of security, the proposed amalgamation agreement must - (a) provide for the cancellation of those shares when the amalgamation becomes effective without any repayment of capital in respect thereof; and (b) not contain any provision for the conversion of those shares into shares of the amalgamated bank. 8. The directors of each applicant shall submit the proposed amalgamation agreement to a general meeting of shareholders, for approval by special resolution, and notice of that meeting must -
(a) set out the terms and conditions of the agreement; (b) unless the Minister otherwise directs in writing be published on at least two occasions in a newspaper in general circulation in Jamaica, the first of such publications being not less than twenty-eight days prior to the meeting, and the second, being not less than fourteen days prior to the meeting; (c) be transmitted to each shareholder in accordance with the provisions of the Companies Act. 9. An amalgamation agreement may provide that, at any time prior to the issue of a licence to the amalgamated licensee, the agreement may be terminated by the directors of an applicant notwithstanding that the agreement has been approved by the shareholders of all or any of the applicants. 10. A licensee may amalgamate with ones or more wholly-owned subsidiaries licensed under the Financial Institutions Act or the banking Act by submitting an application in the form of a scheme in accordance with regulation 3 but shall not be subject to the requirements of paragraphs (c) and (e) of regulation 3, and regulation 8, where - (a) the proposed scheme is approved by a resolution of the directors of the licensee and of each amalgamating subsidiary; (b) the resolutions provide that - (i) the shares of each amalgamating, subsidiary will be cancelled without any repayment of capital in respect thereof; and (ii) the memorandum and articles of association of the licensee are to become those of the amalgamated licensee; and (iii) no shares will be issued by the amalgamated licensee in respect of the amalgamation. 11. On the approval by the Minister of an application under regulation 10, the existing licensee of the subsidiaries will be deemed to be cancelled, and the licence of the applicant licensee will continue as that of the amalgamated licensee. 12. Where a bank and one or more licensees are wholly-owned subsidiaries of the same holding company, they may amalgamate and continue as a bank by submitting a joint application in the form of a scheme in accordance with regulation 3, but shall not be subject to the requirements of the paragraphs (c) and (e) of regulation 3, and regulation 8 if - (a) the proposed scheme is approved by a resolution of the directors of each applicant and the
directors of the holding company; and (b) the resolutions provide that - (i) the shares of all applicants, except those of the bank, will be cancelled without any repayment of capital in respect thereof; (ii) the amalgamated bank will adopt the memorandum and articles of association of the bank; and (iii) the capital of the applicants whose shares are cancelled will be added to the capital of the bank. 13. On the approval by the Minister of an application under regulation 12, the existing licence of the subsidiaries which are licensee will be deemed to be cancelled and the licence of the bank will continue as that of the amalgamated bank. 14. On approval by the Minister of an application under these Regulations for an amalgamation, any existing special permission or concession previously graded by order or otherwise under Banking Act or the Financial Institution Act to any applicant or subsidiary, as the case may be, deemed to be cancelled without prejudice to any transaction already effected in pursuance of the said permission or concession. Transfer of Business 15. Where a bank makes application to the Minister for approval of a scheme to transfer its business (in whole or in part) to another bank, or as the case may be, to a licensee, such application shall be accompanied by a proposed agreement of purchase and sale ("sale agreement'') setting out proposed term and mean of effecting the transfer. 16. The consideration for the transfer may be cash or fully paid shares in the transferee, or in part cash and in part fully paid shares in the transferee, or in part cash and in part fully paid shares in the transferee, or such other consideration as is provided for in the sales agreement. 17. The directors of the selling licensee shall submit to a meeting of the holders of shares of the that licensee, the proposed sale agreement for approval by special resolution, and notice that of that meeting must - (a) set out the terns and conditions of the agreement; (b) unless the Minister otherwise directs in writing be published on at least two occasions, in a newspaper in general circulation in Jamaica, the first of such publications being not less than twenty-eight days prior to the meeting, and the second, being not less than fourteen days prior to the meeting;
(c) be transmitted to each shareholder in accordance with the provisions of the Companies Act. 18. Where the special resolution so states, the directors of the selling licensee may, subject to the rights to the rights of third parties, abandon the sale notwithstanding approval by the shareholders. 19. Where either the selling licensee or purchasing licensee or bank or both had previously received, by order or otherwise, a special permission or concession under a provision of the Financial Institutions Act or the Banking Act, the Minister in considering the application may - (a) take that permission or concession into account and may require such licensee or bank to make a proposal for continuation or variation of that permission or concession and to provide relevant particulars; and (b) require such licensee or bank to furnish additional information. 20. Where the consideration for the transfer involves the acquisition of effective control of the transferee within the meaning of section 20 of the Banking Act, or, as the case may be, section 20 of the Financial Institution Act, the Minister shall not approve the transfer unless transfer properly satisfied as required by the appropriate section. THE NCB TRUST AND MERCHANT BANK LIMITED (TRANSFER TO AND VESTING OF ASSETS AND LIABILITIES COMPRISING THE TRUST BUSINESS OF NATIONAL COMMERCIAL BANK LIMITED) VESTING ORDER, 1996 (Made by the Minister on the 22nd day of October, 1996) 1. This Order may be cited as the NCB Trust and Merchant Bank Limited (Transfer to and Vesting of Assets and Liabilities comprising the trust business of National Commercial Bank Limited) Vesting Order, 1996 and shall take effect from the Transfer Day. 2. In this Order - "Act" means the Banking Act; "Bank" means National Commercial Bank Jamaica Limited; "Scheme of Arrangement" means a Scheme of Arrangement and Amalgamation dated 30th September, 1996 and made between NCB Group Limited, National Commercial Bank Jamaica Limited, NCB Trust and Merchant Bank Limited, and Mutual Security Merchant Bank and Trust Company Limited;
"Transfer Day" means the 3Oth day of September, 1996; "Trust Business" means the assets and liabilities described in the Schedule hereto; "Trust Company" means NCB Trust and Merchant Bank Limited. 3. (1) On and after the transfer day, and without any conveyance, assignment, assurance or transfer, all property real and personal forming part of the trust business of the Bank and all interests, rights and easements in or out of the said property, real or personal, (including things in action) which belong to, are vested in or held by or would but for this Order have belonged to or vested in the Bank shall be transferred to and vested in the Trust Company, subject to all trusts and to all debts, liabilities and obligations affecting such property and trust business. (2) Reference in this Order - (a) to property subject to trusts, include the assets and liabilities of estates of deceased persons in respect of which the Bank has been appointed as the personal representative. (b) to real and personal property, includes all such property held by or vested in the Bank as trustee, nominee or agent for any person or persons and forming part of its trust business. 4. On and after the Transfer Day, section 37 of the Act shall apply to the trust business transferred to and vested in the Trust Company by virtue of this Order. SCHEDULE The assets and liabilities as described in Annexure A to the Scheme or Arrangement. THE BANKING (HOURS OF OPENING) REGULATIONS, 1992 (Made by the Minister on the 31st day of December, 1992) 1. These Regulations may be cited as the Banking (Hours of Opening) Regulations, 1992. 2. In these Regulations, unless the context otherwise requires, "bank" includes any branch of a bank. 3. Subject to the provisions of these Regulations, a bank may open or close for such aspects of banking business as the bank thinks fit, at any necessary or convenient time, provided that each bank shall not provide less than twenty-five and onehalf (25 1/2) hours of service weekly to the public. 4. Subject to regulation 5, no bank shall be open for banking business on any public general
holiday. 5. Banks carrying on banking business at the Norman Manley International Airport and the Donald Sangster International Airport shall not be restricted in their hours of business by the provisions of regulation 4. 6. (1) The Minister may, if it appears to him to be necessary or expedient, by notice issued to any bank and having immediate effect, vary the hours of opening or closing of such bank. (2) As soon as practicable after any variation pursuant to paragraph (1) notice thereof shall be published in the Gazette. 7. A drawer of a bill of exchange or a cheque shall have no claim against a bank by reason only of the fact that a payment is not made, or received, on a date or at a time specified in any agreement if that date or time coincides with a day or time when the bank is closed for banking business pursuant to these Regulations. THE BANKING (EXEMPTION FROM COMPANIES ACT) REGULATIONS, 1992 (Made by the Minister on the 31st day of December, 1992) 1. These Regulations may be cited as the Banking (Exemption from Companies Act) Regulations, 1992. 2. A bank shall be exempt from the necessity to comply with the requirements of section 152 of the Companies Act if that bank transmits to the Registrar, within twenty-one days after the expiration of each period of six months ending with the month of June or December in every year, copies of such of the monthly statements of that bank's assets and liabilities as shall have been delivered to the Bank of Jamaica by the bank under paragraph (a) of subsection (1) of section 16 of the Banking Act. THE BANKING (ESTABLISHMENT OF BRANCHES) REGULATIONS, 1997 (Made by the Minister on the 28th day of January, 1997) 1. These Regulations may be cited as the Banking (Establishment of Branches) Regulations, 1997 2. In these Regulations - "branch" means an office or place of business (other than a head office, principal office or representative office) where a bank carries on any banking business and includes sub-branches,
agencies and sub-agencies of such bank; "host country authority" means the authority of a country outside Jamaica which in that country performs the supervisory functions that in Jamaica are performed by the Department of Supervision of Banks and Financial Institutions of the Bank of Jamaica; "representative office" mean any office, of a bank which is not a head office, principal office or branch. 3. A bank shall not establish a branch or representative office or change the location of an existing branch or representative office without the prior approval of the Minister in writing. 4. Application to the Minister for approval pursuant to regulation 3 shall be made by the bank concerned through the Bank of Jamaica and shall contain the information set out in the Schedule hereto and such additional information as the Bank of Jamaica or the Minister may require pursuant to regulation 7 or 8. 5. An application under regulation 4 shall not be granted unless the Minister is satisfied as to - (a) the history and financial condition of the bank; (b) the suitability of its management; (c) the adequacy of its capital; (d) the convenience and needs of the community to be served; and (e) the public interest which will be served by the establishment or, as the case may be, change of location of the branch or representative office. (6). Where an application is for the establishment or relocation outside Jamaica of a branch or representative office, the application shall not be granted unless the Minister after consultation with the Governor of the Bank of Jamaica is satisfied that - (a) the host country authority has the necessary capacity for carrying out supervision that complies with generally recognized international standards; (b) the host country authority has given its consent to the establishment of the branch or representative office; (c) the host country authority and the Bank of Jamaica have reached agreement on the allocation of responsibility for supervision either generally or in respect of specific activities;
(d) an understanding has been reached, and the respective laws are in place, for each country's authority to be able to gather information from the other and from the branch, head office, or representative office, as the case may be, to the extent necessary for effective supervision; (e) an understanding has been reached with the host country authority whereby, if certain minimum standards of supervision are not available in host country, the Bank of Jamaica may impose restrictive measures necessary to satisfy its prudential concerns; (f) the bank's Board of Directors has approved and executed a document authorizing information in respect of the applicant to be given to the host country authority, and the host country authority has agreed to give relevant information on the branch's operation, to the Bank of Jamaica 7. An application under regulation 4 and supporting documents (if any), shall be transmitted to the Minister through the Bank of Jamaica which may require any further particulars to be supplied by the applicant and which shall- (a) examine the application and supporting documents; (b) make recommendations thereon; and (c) forward one copy of the application, the supporting documents and the recommendations to the Minister. 8. The Minister may, after receiving the application, any supporting documents and the recommendations of the Bank of Jamaica under regulation 7, require additional information to be supplied and may - (a) grant the application subject to such conditions (if any), as he sees fit; or (b) refuse the application, and any such grant or refusal with reasons therefor shall be notified in writing to the applicant bank. 9. Where there is any material change in any of the particulars furnished with an application under these Regulations, the bank concerned shall in writing inform the Minister and the Bank of Jamaica forthwith. 10. For the purpose of determining -
(a) the cash reserve; (b) the liquid assets, which a bank is required to hold under sections 14 and 15 of the Banking Act, the prescribed liabilities of each branch (whether overseas or local) of that bank, may be taken into account. 11. In respect of any notice issued by the Bank of Jamaica pursuant to section 28 (3A) or section 29 (3A) of the Bank of Jamaica Act, a bank which maintains any overseas branch shall establish arrangements with the branch such as to ensure compliance with the notice. 12. (1) The operations of a branch or representative office of a of bank may not be discontinued unless the bank has given the Minister six months' written notice of intention to do so, or such shorter period of notice as the Minister may in writing permit. (2) The notice pursuant to paragraph (1) shall include information regarding any arrangements effected or contemplated by which the business of the customers of the branch will be transferred to another branch of the bank. 13.Where immediately before the commencement of these Regulation, a branch or representative office of a bank was in operation, approval under regulation 4 shall be deemed to have been granted and shall continue in force unless the bank fails within such reasonable time as the Bank of Jamaica may specify in writing, to supply it with such information as pertains to an application under regulations 4 as it may require. SCHEDULE (Regulation 4) PART A Basic information to be included with application under Regulation 4 (1) name of applicant; (2) location of proposed branch or representative office; (3) status (whether it is to be a branch, sub-branch, agency or sub-agency); (4) number of persons likely to be employed; (5) approximate date of opening; (6) whether management resources would be assigned from the head office in Jamaica to the proposed branch or representative office, and if not, where these resources would be drawn from,
and whether the chief management personnel have been designated, their names and other particulars, including business experience, qualifications, and duties; (7) approximate population and its density in the area to be served by the branch or representative office; (8) number and location of existing banking facilities in that area; (9) principal economic activities in that area and the location thereof; (10) financial projections for the proposed branch or representative office for its first five years of operations, which should include balance sheet, profit and loss and cash flow data, and the financial and economic assumptions upon which they are based; (11) estimated capital expenditure on the proposed branch or representative office specifically - (a) estimated cost of furniture and equipment; and (b) estimated cost of premises; (12) main activities to be conducted; (13) any other relevant information. PART B Additional information in respect of a proposed overseas branch (1) the advantages to the applicant and Jamaica; (2) the nature and level of activities to be undertaken by the overseas branch; (3) the business plan for the branch its relationship to the overall business plan of the bank; (4) impact on the profitability, the capital base and risk profile of the bank; (5) how the mat proposes to monitor and supervise the activities of the proposed Overseas branch; (6) specific details as to how and from what source the branch will be funded and capitalised; (7) relevant details about the host country, in particular - (a) whether exchange control is applicable and if so the basic rules that are relevant;
(b) whether, if exchange control is applicable, approval for the operations has been obtained (with supporting documentation); (c) the nature and extent of the supervisory functions performed by the host country, and any information as to whether the supervisory approach varies according to the type of banking establishment supervised, as for example a branch vis-a-vis a locally incorporated subsidiary; (d) whether the laws regulations or practices of the host country restrict the level or type of activities that such an undertaking would be allowed to engage in; (e) whether solvency, liquidity and foreign exchange exposure requirements are imposed by the host country jurisdiction on banks incorporated there, and if so what these are, and whether they would likewise apply to overseas branches of Jamaican banks operating there. (8) information as to the existence of secrecy provisions in the legislation of the host country which might prevent or hinder the exchange of relevant prudential information between the host country authority and Bank of Jamaica; (9) any other relevant information. THE BANKING (CAPITAL BASE) REGULATIONS, 1997 (Made by the Minister on the 19th day of December, 1997) 1. These Regulations may be cited as the Banking (Capital Base) Regulations, 1997. 2. For the purpose of paragraph (a) of the definition of "capital base" in section 2 (1) of the Act, the amount of shareholder's equity and eligible reserves of a bank which may be taken into account in calculating its capital base shall be the total of such amounts, less any amount by which that total has become impaired by operating or other losses. 3. For the purpose of regulation 2 "shareholder's equity" means- (a) in respect of a foreign bank, its assigned capital; and (b) in respect of a local bank- (i) its paid-up ordinary shares; (ii) its paid-up preference shares;
(iii) capital paid in excess of par value of shares (share premium); (iv) capital raised by the bank from an issue of its shares to a Government agency or undertaking pursuant to an arrangement for the provision of financial assistance to the bank for the purpose of its restructuring. THE BANKING (DAYS OF CLOSURE) (31ST DECEMBER, 1999 AND 3RD JANUARY, 2000) REGULATIONS, 1999 (Made by the Minister on the 9th day of September, 1999) 1. These Regulations may be cited as the Banking (Days of Closure) (December 31,1999 and January 3, 2000) Regulations, 1999. 2. All banks shall remain closed on the 31st December, 1999 and 3rd January, 2000.