Section 45, The Banking Act, 2019

(1) A lending on preferential terms to employees of a bankor financial holding company shall be part of a formally approved employment package or employee benefits plan. (2) A bank or financial holding company shall not grant to any of its employees any unsecured advances or credit facilities, the aggregate amount of which exceeds 2 years' total emoluments of the officer or employee. on lending to employees. No. 6 The Banking Act 2019No. 6 The Banking Act 201966 67 (3) The aggregate amount of all loans on preferential terms, both secured and unsecured, by a bank or financial holding company to employees shall not exceed 20% of the bank or financial holding company's net own funds. (4) A bank or financial holding company who grants advances or credit facilities in contravention of this section is liable to an administrative penalty. (5) When calculating capital adequacy, any credit exposures that are in violation of this section shall be deducted from capital.