Seychelles
Financial Institutions Act
Financial Institutions (Capital Adequacy) Regulations, 2010
Statutory Instrument 73 of 2010
- Commenced on 15 November 2010
- [This is the version of this document at 1 December 2014.]
1. Citation
These Regulations may be cited as the Financial Institutions (Capital Adequacy) Regulations, 2010.2. Interpretation
In these Regulations—“average annual gross income” means the average of the positive gross income for the preceding 3 years where gross income equals the sum of the net interest income and non-interest income;“capital base” means the sum of tier 1 capital and eligible tier 2 capital net of any deductions from total capital as prescribed in Schedule 1;“core capital” otherwise referred to as tier 1 capital, means capital for the purpose of computing risk weighted capital adequacy ratio;“risk-adjusted assets” means the sum of the credit risk and operational risk components where—(a)“credit risk component” means the sum of the risk adjusted values of the bank's assets and off balance sheet assets using four steps—(i)Assign the bank's on-balance sheet assets to categories having an assigned credit risk-weight using the prescribed guidelines in Schedule 2;(ii)Convert the bank's off-balance sheet accounts to credit-equivalents by using the credit conversion factors prescribed in Schedule 3 then, assign each credit-equivalent to a credit-risk category in Schedule 2;(iii)Calculate the risk-adjusted value of the assets and off-balance-sheet items by multiplying the amount of each asset and off-balance sheet assets by the percentage risk-weight to which it was assigned;(iv)Sum the risk-adjusted values of the bank's assets and off-balance sheet accounts.(b)“operational risk component” is calculated using the following two steps—(i)Derive the bank's average annual gross income for the preceding three years; use only such years with positive gross income, and base the average on that number of years;(ii)Multiply the bank's average annual gross income computed under (i) by 1.25.3. Application
4. Minimum capital requirement
5. Minimum capital ratios
6. Restriction on capital distribution
No bank shall make a capital distribution, including payment of dividends, unless the bank exceeds, and will continue to exceed after making the distribution, the minimum capital ratios.7. Reporting requirements
Within 15 days after the end of each month, and in the format prescribed by the Central Bank, each bank shall submit to the Central Bank a report showing the calculation of the tier 1 and tier 2 capital, the capital base, risk-adjusted assets and the capital ratios in accordance with these Regulations.History of this document
15 November 2010
Commences.