Section 63: Risk-Based Capital Requirements.

(1) The Bank may, by notice in writing, require any bank, specialised bank or other financial institution to maintain capital funds of such amount (not being less than the minimum prescribed in section 9, as the case may be) and in such manner as the Bank considers appropriate, having regard to the risks arising from the activities of the bank, specialised bank or other financial institution, and such other factors as the Bank may consider relevant.
(2) Without limiting the generality of subsection (1), a notice by the Bank may prescribe-
(a) the appropriate level (which may be expressed in the form of a ratio) and quality of capital that is commensurate with the type and concentration of risk of the bank, specialised bank or other financial institution;
(b) the manner and process for calculating the level or quality of capital of the bank, specialised bank or other financial institution;
(c) the internal processes of each bank, specialised bank or other financial institution in assessing the adequacy of its level and quality of capital, having regard to the risks arising from the activities of the bank, specialised bank or other financial institution may consider relevant;
(d) the reports to be submitted by each bank, specialised bank or other financial institution; and
(e) restrictions on the distributions by a bank, specialised bank or other financial institution of dividends, bonuses, commissions, payments as a result of a buyback of shares, and any other payment, in the event that it fails to maintain the level or quality of capital prescribed under subsection (1).
(3) The Bank may, if it considers appropriate in a particular circumstance, having regard to the risks arising from the activities of a bank, specialised bank or other financial institution and such other factors as the Bank considers relevant, vary any capital adequacy requirement imposed by a notice under section 9 of this Act by a notice on that bank, specialised bank or other financial institution.
(4) Without prejudice to subsection (3), the Bank may restrict or suspend the operations of a bank which fails to comply with a notice under this section.
(5) A bank, specialised bank or other financial institution which fails to comply with a notice under this section or any restriction or suspension imposed by the Bank under subsection (4) is liable to a penalty of not less than N2,000,000 and an additional penalty of not less than N50,000 for every day during which such offence continues.