1. The Board of Directors shall, for the purposes of prudential supervision, issue necessary instructions and directives to a particular Licensed Financial Institution, or to a number of Licensed Financial Institutions within a specific category, including: a. Compliance with Central Bank instructions and directives relating to prudential ratios determined by the Board of Directors, regarding capital adequacy and liquidity or any other purposes. b. Compliance with the required provisions, or processing of specific assets. c. Adherence to limits of credit exposures. d. Adherence to limits of exposures to related parties. e. Satisfying any additional requirements relating to reporting. 2. The Central Bank may take any additional actions to those mentioned in item (1) of this article. 3. The Central Bank may instruct any subsidiary of a Licensed Financial Institution to take particular actions, or refrain from carrying on particular activities, in any of the following cases: a. If the Central Bank is the consolidating supervisory authority of the entities referred to in this item. b. If the Central Bank decided that such instruction is necessary for the exercise of effective and consolidated prudential supervision of the entities referred to in this item. 4. The instructions referred to in item (3) of this article may include the following: a. Require the subsidiary of the concerned Licensed Financial Institution to suspend provision of particular services, or carrying on particular business or activities, or closing down any of its offices or branches outside the State, if such services, business or activities may expose the concerned Licensed Financial Institution to additional risk, or to risks that cannot be managed effectively and appropriately. b. Require the subsidiary of the concerned Licensed Financial Institution to take all necessary actions to remove any impediments that may hinder effective consolidated supervision. 5. The Central Bank may notify any parent company of a Licensed Financial Institution to take certain measures or refrain from engaging in certain activities, in any of the following cases: a. If the Central Bank is the consolidated supervisory authority for the institutions referred to in this item. b. If the Central Bank deems such notification necessary to exercise effective and consolidated prudential supervision over the institutions referred to in this item.
Interpretation and application must be checked against the official text and current version.