REGULATION DATED MAY 22, 1995

ON THE RISK COVER RATIO (CAPITAL ADEQUACY)

No: 795-03

The Governor of the National Bank

Decides:

Article 1:

A licensed bank shall observe at all times a minimum ratio fixed one to twenty between its net worth and its assets plus off balance sheet commitments and contingent liabilities made in all currencies.

Article 2:

The numerator, net worth, is determined in accordance with the annex attached hereto.

Article 3:

The denominator comprises:

However, some of the following assets and off balance sheet contingent risk may be deducted therefrom:

Article 4:

In complying with this regulation a bank shall deliver a periodic declaration to the National Bank. The content and periodicity of the declaration shall be determined by separate circular.

Article 5:

These arrangements apply from the end of May 1995.

 

Signed: Thor Peng Leath

Governor of NBC