Section 66, The Banking Act, 2019

(1) Where a bank or financial holding company isundercapitalized, the Central Bank shall take the following actions - (a) order the bank or financial holding company to submit to the Central Bank within 45 days an acceptable capital restoration plan and to restore the bank or financial holding company to capital adequacy within 180 days of making the order; (b) 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 in Part V; (c) undertake more frequent inspection of that bank or financial holding company; and (d) prohibit the bank or financial holding company from awarding any bonuses or increments in the salary, emoluments and other benefits to any director or key management personnel. (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 the bank or financial holding company to provide written explanation detailing the cause of the losses and the measures to be taken by the bank or financial holding company to rectify the problem and avert future losses. (3) Where a bank or financial holding company has been ordered by the Central Bank to submit a capital restoration plan and to inject more capital and it fails to comply and implement this order the Central Bank shall do one or more of the following - (a) prohibit the bank or financial holding company from opening new branches; (b) restrict the bank or financial holding company from engaging in new business; (c) impose restrictions on growth of assets or liabiities of the bank or financial holding (d) restrict the rate of interest on all interest earning deposits payable by the bank or financial holding company to the rates that the Central Bank shall determine. (4) In addition to the action that may be taken under subsection (3) the Central Bank may- (a) direct the removal of officers of the bank or financial holding company responsible for noncompliance; and (b) require the bank or financial holding company to take any other action that the Central Bank may deem necessary to rectify the capital inadequacy. 82 83 Prompt corrective action for undercapitalised banks and holding companies. (5) The Deposit Protection Fund shall be notified immediately the Central Bank initiates action under this section.