A Restricted Licence Finance Company must maintain a minimum level of capital on an ongoing basis.
25.2
A Restricted Licence Finance Company must hold and maintain the higher of:
a.
Aggregate Capital Funds of Twenty million Dirham (AED 20,000,000); or
b.
Aggregate Capital Funds equivalent to 5 per cent of the outstanding lending volume.
25.3
Aggregate Capital Funds consist of the following items:
a.
Paid-up capital;
b.
Reserves, excluding revaluation reserve; and
c.
Retained earnings.
25.4
The following items must be deducted from Aggregate Capital Funds:
a.
Accumulated losses; and
b.
Goodwill.
25.5
A Restricted Licence Finance Company must obtain prior approval from the Central Bank for any changes to its capital.
25.6
The Central Bank may, at its sole discretion, impose a higher minimum capital requirement on a Restricted Licence Finance Company, taking into consideration, inter alia, its size, the nature and scale of its operations and the volume of transactions.