Section 8, The Banking Act, 1964

(1) Every licenscd bank shall maintain a reserve fundand, before any dividend is declarcd, shall transfer to such fund out of the net profits of cach ycar (after due provision has been made for taxation) a sum equal to not less than fifty per centum of such net profits so long as the reserve fund is equal to less than half the paid up capital. So long as the reserve fund is equal to half but less than the whole amount of the paid up capital, a sum equal to twenty-five per centum of such net profits shall be transferred to the reserve fund. (2) If the Minister after consultation with the Central Bank is satisfied that the aggregate reserve fund of a licensed bank whose head office is situated outside Sierra Leone is adequate for its business the Minister may by order in writing exempt such bank from the provisions of subsection (1).