Financial Leasing Act, 2013
Financial Leasing (Capital Adequacy and Reserve Fund) Regulations, 2014
Statutory Instrument 113 of 2014
- Commenced on 29 December 2014
- [This is the version of this document at 31 December 2015.]
1. CitationThese regulations may be cited as the Financial Leasing (Capital Adequacy and Reserve Fund) Regulations, 2014.
2. InterpretationIn these Regulations—"Act" means the Financial Leasing Act, 2013;"average annual gross income" means the average of the positive gross income for the preceding three years where gross income equals the sum of the net interest income and non-interest income;"banks" shall have the meaning ascribed to it under section 2 of the Financial Institutions Act;"capital base" means the sum of tier one capital and tier two capital net of any deductions from total capital as specified in Schedule I;"core capital" otherwise referred to as "tier one Capital" means capital for the purpose of computing risk weighted capital adequacy ratio;"deposit-taking financial leasing institution" means financial leasing institutions licenced under the Act and granted specific approval under section 32(2) of the Act to accept deposits from the public;"risk-adjusted assets" means the sum of the credit risk and operational risk components wherein—(a)the credit risk component refers to the sum of the risk-adjusted values of the financial leasing institution's assets using the following steps—(i)assign the financial leasing institution's on-balance sheet assets having an assigned credit risk-weight using the guidelines set out in Schedule 2 to these regulations;(ii)calculate the risk-adjusted value of the assets by multiplying the amount of each asset by the percentage risk-weight to which it has been assigned; and(iii)sum the risk-adjusted values of the financial leasing institution's assets;(b)the operational risk component is calculated using the following two steps, namely—(i)derive the financial leasing institution's average annual gross income for the preceding three years; using only such years with positive gross income, and base the average on that number of years; and(ii)multiply the financial leasing institution's average annual gross income computed under 2(b)(i) by 1.25;"licensee" means a financial leasing institution licenced under the Act;"standard asset" means any asset that may be easily resold;"specific asset" means any asset that is difficult to resell.
4. Minimum capital requirement
5. Deposit of paid-up capitalEvery financial leasing institution not being a bank shall at all times invest or deposit at least half of its paid-up capital in a bank, Treasury Bill of other Government securities of not more than 365 days.
6. Minimum capital ratios
7. Restriction on capital distributionA financial leasing institution shall not pay any dividend on its shares and a foreign financial leasing institution shall not transfer overseas any profits earned in Seychelles, unless the Central Bank is satisfied, that—
8. Reserve fund
9. Reporting requirementsEvery financial leasing institution shall, within 15 days after the end of each month, and in the format to be provided by the Central Bank, submit to the Central Bank a report showing the calculation of—
History of this document
29 December 2014