Regulatory Alerts2012-03-23
Central Bank of Liberia Regulation No. CBL/SD/001/2008 on Minimum Capital Requirements for Banking-Financial Institutions
The Central Bank of Liberia mandates a staged capital increase for all bank-financial institutions, requiring existing entities to reach US$6 million by 2008, US$8 million by 2009, and US$10 million by 2010. New market entrants must meet the corresponding capital thresholds for their respective entry years, while existing institutions face a Capital Adequacy Ratio increase from 8 percent to 10 percent. These capital components and adequacy computations remain governed by the Central Bank's prior prudential regulation or future revisions.
THE LIBERIA OFFICIAL GAZETTE PUBLISHED BY AUTHORITY ________________________________________________________________________________ VOL. VI June 20, 2008 NO. 2 E X T R A O R D I N A R Y The Government of the Republic of Liberia announces that the Central Bank of Liberia (CBL), pursuant to its mandate under the Central Bank of Liberia Act of 1999 and its authority under the Financial Institutions Act of 1999, and specifically consistent with Section 55 of the said Central Bank of Liberia Act of 1999 and Section 15 of the Financial Institutions Act of 1999, issued, on June 20, 2008 its Regulation No. CBL/SD/001/2OO8 herein under: CONCERNING MINIMUM CAPITAL REQUIREMENT FOR BANK-FINANCIAL INSTITUTIONS MINISTRY OF FOREIGN AFFAIRS MONROVIA, LIBERIA JUNE 20, 2008
CENTRAL BANK OF LIBERIA REGULATION NO. CBL/SD/001/2OO8 CONCERNING MINIMUM CAPITAL REQUIREMENT FOR BANK-FINANCIAL INSTITUTIONS The Central Bank of Liberia, pursuant to its authority at Section 39 (1) of the New Financial Institutions Act (FIA) of 1999 and specifically consistent with Section 15 thereof, hereby prescribes, institutes and sets forth as follows:
- Bank-Financial Institutions shall maintain the minimum capital requirement and minimum ratio and exposure concerning their risk-weighted assets and off balance sheet items and other categories of capital and reserve as follows: The minimum capital requirement for a bank-financial institution shall be increased in stages to US$10,000,000 (ten million United States Dollars) by end of 2010 as follows: i) Every Bank-financial institution whose minimum unimpaired capital is below US$6,000,000.00 (Six Million United States dollars) at the time of the issuance of this regulation is hereby required to increase said capital to not less than US$6,000,000.00 by end of 2008. ii) Every bank-financial institution shall increase the minimum unimpaired capital requirement to US$8,000,000.00 (Eight Million United States dollars) by end of
iii) Every bank-financial institution shall increase the minimum capital unimpaired requirement to US$10,000,000 (Ten Million United States dollars) by end of 2010. iv) The minimum capital requirement for any new entering bank-financial institution in 2008 shall be US$6,000,000 (six million United States dollars); in 2009, US$8,000,000 (Eight Million United States dollars); in 2010, US$10,000,000 (Ten Million United States dollars). v) The minimum Capital Adequacy Ratio (CAR) for every bank-financial institution is hereby increased from 8% to 10%. 2. The components of capital requirement and the computation of the capital adequacy ratio shall remain as prescribed in prudential regulation No. CBL/SD/01/2000 published in Gazette No. 1 on December 5, 2000 or as shall from time to time be revised by the Central Bank of Liberia. BY ORDER OF THE PRESIDENT OLUNBANKE KING-AKERELE MINISTER OF FOREIGN AFFAIRS MINISTRY OF FOREIGN AFFAIRS MONROVIA, LIBERIA JUNE 20, 2008