Regulatory Alerts2019-05-27
Notice No. 7/GBM/2019 of 27 May – Revokes Paragraph 3 of Article 8 of Notice No. 5/GBM/2018 of 6 June on Prudential Limits to Risk Concentration
The Bank of Mozambique issued Notice No. 6/GBM/2019 to establish prudential ratios and limits for investment funds and their management companies, defining eligible assets, portfolio concentration caps, risk management obligations, and own fund composition requirements. Concurrently, Notice No. 7/GBM/2019 repeals paragraph 3 of Article 8 of Notice No. 5/GBM/2018 to harmonize the deduction regime for excesses in prudential risk concentration limits with existing credit institution regulations. These measures standardize capital adequacy, asset valuation, and disclosure practices to safeguard financial stability and align domestic fund management with international reporting standards.
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