Section 62, The Banking Act, 2019

(1) The Central Bank may, based on its findings of aninvestigation and examination conducted under section 55 or information otherwise at its disposal, take action where it determines that a bank or financial holding company, a director, executive officer or significant shareholder of a bank or financial holding company - (a) has failed to adhere to any prudential requirements prescribed under this Act; Resolvability assessments, ex-ante resolution plans and follow-up action. Confidentiality. Power to take action. Mutual Cooperation in exchange of confidential information. (b) no longer possesses sufficient capital to meet its obligations towards its depositors and creditors; (c) has failed to maintain the prescribed minimum capital adequacy ratio under section 27; (d) has violated any condition or restriction attached to a licence issued or registration granted under this Act; (e) has been conducting its business in a manner considered by the Central Bank to be unsafe, unsound or detrimental to the interest of its depositors and creditors; (f) has compromised the interest of its depositors and creditors due to excessive risk-taking or poor risk management; (g) has failed to comply with the provisions pertaining to liquidity under section 32; (h) has assets that are not likely to meet its obligations in terms of maturity; (i) is unable to reliably perform its activities, due to impaired balance between revenues and expenses; (j) has assets that have deteriorated in such an extent as to weaken its financial structure; (k) has not established its internal audit, internal control and risk management systems or cannot operate these systems efficiently; (l) is not being adequately supervised by other supervisors relative to the risks attached to its activities; (m) has hindered effective supervision on a consolidated basis; or (n) has failed to comply with any provision of this Act or of regulations, directives or rules issued under this Act; (2) The Central Bank may, where it determines that any one or more of the situations in section (1) exist - (a) issue a written warning to a bank or financial holding company, its chief executive, directors or key management personnel; (b) require a bank or financial holding company to cease an unsafe or unsound practise; (c) conclude a written agreement with a bank or financial holding company providing for a program of remedial action; (d) impose administrative penalties on a bank or financial holding company, its directors, key management personnel and employees for each day that an unsafe or unsound condition continues; (e) require the restructuring of the ownership of the bank or financial holding company; (f) require the restructuring of the range of activities that a consolidated group may be engage in; (g) prohibit a bank or financial holding company from further lending or taking further credit exposures, including investments, or capital expenditure; (h) require the bank or financial holding company, or any of its subsidiaries, to suspend for a specified period of time, alter, reduce, or terminate any activity that has caused material losses to the bank or financial (i) restrict or prohibit transactions with affiliates; 76 77 (j) require a bank or financial holding company to divest itself of or liquidate any subsidiary; (k) restrict payment of bonuses or compensation to any director or key management personnel; (l) prohibit a bank or financial holding company from paying dividend on its equity capital or rights, issue or bonus shares to shareholders or to any person claiming under their authority; (m) suspend or remove from office the chief executive of a bank or financial holding company or restrict the chief executive's powers; (n) suspend or remove any or all of the directors, key management personnel of bank or financial holding company or restrict their powers; (o) appoint an advisor; (p) prohibit a bank or financial holding company from receiving fresh deposits or renewing the existing deposits; (q) revoke the licence of a bank and appoint a receiver; (r) withdraw the registration of a financial (s) require a bank or financial holding company to take such remedial action as the Central Bank may specify; or (t) require a bank or financial holding company to take such further action as the Central Bank considers necessary. (3) The powers of the Central Bank to take action under this section shall be in addition to any other specific actions or administrative penalties that may be imposed by the Central Bank under this Act. (4) The Central Bank shall notify a bank or financial holding company immediately it initiates measures under this section against that bank or financial holding company. (5) The Central Bank shall notify the Deposit Protection Fund immediately it initiates measures under this section against a