This General Banking Act provides the basic principles and frameworks through which banking institutions may be formed, settled, governed, and regulated.
It establishes and states the duties of the Banking and Financial Institutions Regulator. It also provides guidelines for the formation of a bank charter and the design of a bank management framework.
To begin operations, the founding shareholders of a bank shall first submit a prospectus to the regulator. Upon the acceptance of the prospectus, a provisional certificate of authorization will be delivered to founding shareholders. This shall enable them to carry out all processes leading to the company’s organization and operation. During the first three years of the bank's existence, the regulator shall supervise compliance with the plan laid out in the prospectus.
The law includes requirements for the appointment of upper management executives and board members. The appointment of a new member shall be published on a local newspaper and shall be communicated to the regulator. Capital issuance, reserve requirements and dividends are also discussed.