(1) Where a licensed financial institution or affiliate which complies with the capital requirements under this Act or prudential standards issued by the Central Bank has incurred or is likely to incur losses within any financial year, the Central Bank shall by order or direction take any of the following actions —
(a) prohibit the licensed financial institution or affiliate from declaring and distributing any dividends which are, in the opinion of the Central Bank, likely to cause it not to comply with the capital requirements under this Act or prudential standards issued by the Central Bank or otherwise would be detrimental to the financial soundness of the licensed financial institution;
(b) undertake more frequent inspection of the licensed financial institution or affiliate;
© require additional or more frequent reporting;
(d) require the directors or officers of the licensed financial institution or affiliate to provide a written explanation detailing the causes of those losses and the measures to be taken by the licensed financial institution or affiliate to rectify the position and prevent future losses.
(2) This section shall not be construed so as to preclude the Central Bank from taking action under any other section of this Act.