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, relating to:

• 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 large 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 the following cases:

• a. If the Central Bank is the consolidated regulatory 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 and directives 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 businesses or activities, or even closing down any of its offices or branches outside the State, if such services, businesses 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.