s 16
(1) The Central Bank may from time to time prescribe by notice in writing to each Islamic bank a minimum amount or amounts of liquid assets to be held by the bank at all times. (2) The minimum amount of amounts of the assets so prescribed to be held shall be expressed in the form (a) a percentage or percentages which such assets shall bear to the sight, savings account, time and other deposit liabilities of each Islamic bank and such other liabilities thereof as may be determined by the Central Bank, either jointly or separately; and (b) a percentage which such assets shall bear to the investment account of each Islamic bank; and such percentage or percentages may be varied by the Central Bank from time to time by notice in writing to the bank. nd all transfer to rofits of each sen made for e reserve fund of the paid-up less than fifty its; e reserve fund ess than one the paid-up not less than le net profits. the aggregate equate for its mpt the bank I a period of time to time slamic bank a I assets to be : of thaits of the assets ised in the form all bear to the uertol as may Bank, either all bear to the nic bank; i be varied by stice in writing IPt. III, S. 16] (3) Whenever the Central Bank issues a notice under subsection (1) each Islamic bank shall be allowed such uniform period of grace, being not less than one week, as may be specified in that notice in which to comply with the provisions thereof. (4) An Islamic bank shall not, during any period in which it has failed to comply with any notice under subsection (1), without the approval of the Central Bank, lend or advance any money to any person. (5) For the purpose of computing the minimum amount or amounts of liquid assets under this section and the sight, savings account, investment account, LIslamic time and other deposit liabilities of an Islamic bank carrying on business in Malaysia and elsewhere and deposil RAIAES' such other liabilities of such bank as may be determined by the Central Bank, the offices and branches of such bank in Malaysia shall be deemed to constitute a separate bank carrying on business in Malaysia. (6) For the purposes of this section liquid assets shall be- (a) notes and coin which are legal tender in Malaysia; (b) balances at the Central Bank, not including the reserve specified in paragraph (c) of subsection (1) of section 37 of the Central Bank of Malaysia Ordinance 1958; 61/58. (c) investment certificates issued under the Government Investment Act 1983; and Act275. (d) such other assets as may be approved by the Minister on the recommendation of the Central Bank. (7) The Central Bank may by notice in writing require each Islamic bank to render such return or returns as the Central Bank deems necessary for the implementation of this section. (8) Any Islamic bank which fails to comply with any of the provisions of this section shall be liable to pay, on being called upon to do so by the Central Bank, a penalty of not more than one-tenth of one pey dertiun of the amdencieney eodeiniency for every Auditor and auditor's report. Act 125. Act 125. [Pt. II, S. 16-17] (9) Any Islamic bank which fails or refuses to pay a penalty under subsection (8) shall be guilty of an offence under this Act.