Act 102 Banking Act, 1973 PART II- LICENSING OF BANKS
Section 5. Licence not to be granted in certain cases.
(1) No bank shall be granted a licence under section 3 nor shall any bank licensed thereunder carry on business in the Federation without the written consent of the Minister if-
(a) in the case of a bank incorporated in the Federation, its capital funds unimpaired by losses or otherwise is less than two million Malaysian dollars;
(b) in the case of a bank incorporated outside the Federation -
(i) its capital funds unimpaired by losses or otherwise is less than five million Malaysian dollars; and
(ii) it holds net working funds in the Federation, unimpaired by losses or otherwise of less than two million Malaysian dollars.
(2) For the purposes of this section -
"capital funds" means paid-up capital and reserves;
"net working funds" in relation to a bank incorporated outside the Federation means the net liabilities of its branches and offices in the Federation to its branches and offices outside the Federation computed in such a manner as may be prescribed by notice in writing from time to time by the Central Bank.
