The Principal Act is amended by substituting the following for section 45:

"45.

(1) In this section -

'assets' means such assets as the Bank may from time to time specify for the purposes of this section;

'regulatory reserve' means a reserve that is a realised financial reserve which is -

(a) unrestricted and non-distributable,

(b) identified separately in a credit union's accounts, and

(c) to be maintained by a credit union pursuant to this section;

'regulatory reserve requirement' means the amount required to be held in the regulatory reserve of a credit union, expressed as a percentage of the assets of a credit union and prescribed by the Bank.

(2) A credit union shall maintain reserves that are adequate having regard to the nature, scale, complexity and risk profile of its business.

(3) The Bank may prescribe the regulatory reserve requirement that a credit union shall maintain at a minimum and, in so prescribing, may include conditions on the application of the regulatory reserve requirement. For that purpose the Bank may also prescribe in respect of other matters related to the regulatory reserve requirement, including any of the following:

(a) the application of risk weightings to assets for the purposes of calculating the regulatory reserve requirement;