Section 30, The Banking Act, 2019

(1) A bank or financial holding company shall maintain ina statutory reserve fund of such amount as may be prescribed by the (2) A statutory reserve fund to be maintained by a bank under subsection (1) shall comprise the following amounts which shall be transferred out of its net profits for each year before it declares any interim or final dividend and after it has made provision for any taxes - (a) where the amount of the statutory reserve fund of the bank is less than 50% of its paidup capital, an amount which shall not be less than 50% of its net profit for the year; (b) where the amount of the statutory reserve fund of the bank is 50% or more, but less than 100% of its paid-up capital, an amount which shall not be less than 25% of its net profit for the year; and (c) where the amount of the statutory reserve fund of the bank is equal to 100% or more of its paid up capital, an amount equal to 12.5% of its net profit for the year. (3) A bank or financial holding company shall not appropriate a sum from the balance in its statutory reserve fund except with prior approval of the Central Bank. maintain a statutory reserve fund is liable to an administrative penalty.