Section 67, The Banking Act, 2019

(1) Where a bank or financial holding company issignificantly undercapitalised, the Central Bank shall take the following actions- (a) enter into an agreement with the Board of directors of the bank or financial holding company to rectify the significant undercapitalisation within 90 days and to restore capital adequacy within 180 days or within a shorter period that the Central Bank shall require; (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; (d) prohibit the bank or financial holding company from awarding any bonuses or increments in the salary, emoluments and other benefits to all directors and key management personnel; and (e) prohibit the bank, or financial holding company from engaging in new off balance sheet transactions. (2) In addition to the actions that may be taken in subsection (1), the Central Bank may require the directors or key management personnel of the bank or financial holding company to provide a written explanation detailing the causes of those losses and the measures to be taken by the bank or financial holding company to rectify the problem and avert future losses. (3) The Central Bank may take such action that may have a positive impact on - (a) governance; (b) cash availability; (c) bank operations and expansion. (4) Where at any time- (a) before the end of the period specified in paragraph (a) of subsection (1), the financial position of a bank or financial holding company continues to deteriorate; or (b) after the period specified in paragraph (a) of subsection (1) a bank or financial holding company has failed to raise its capital to the levels necessary to rectify its significant undercapitalisation, the Central Bank may appoint an Official Administrator or revoke the licence of the bank or withdraw the registration of the financial holding company. (5) This section shall not preclude the Central Bank from taking action under any other provision of this Act prior to the expiration of the respective time period under paragraph (a) of subsection (1). (6) The Deposit Protection Fund shall be notified immediately the Central Bank initiates action under this Section. PART X - RESOLUTION OF BANKS AND FINANCIAL HOLDING COMPANIES