Section 65, The Banking Act, 2019

(1) Where a bank or financial holding company whichmaintains a capital adequacy ratio in compliance with the capital requirements under Part V has incurred or is likely to incur material losses within any financial year, the Central Bank may take the following actions- 80 81 Prompt corrective action for adequately capitalised banks and holding companies. (a) prohibit the bank or financial holding company from declaring and distributing any dividends which are, in the opinion of the Central Bank, likely to cause it not to comply with the capital requirements prescribed in Part V; and (b) undertake more frequent inspection of that bank or financial holding company. (2) In addition to the action that may be taken under subsection (1), the Central Bank may require the directors or key management personnel of a bank or financial holding company to provide written explanation detailing the cause of losses incurred or is likely to be incurred by the bank or financial holding company and the measures to be taken to rectify the problem and avert future losses. (3) The Deposit Protection Fund shall be notified immediately the Central Bank initiates action under this section.