Regulatory Alerts2017-06-09
Notice No. 14/GBM/2017, of June 9 – Liquidity Ratio for Credit Institutions
The Bank of Mozambique issued Notice No. 14/GBM/2017 to mandate a prudential liquidity ratio for monitoring banking system stability. Credit institutions must continuously maintain a daily liquidity ratio of at least 25%, calculated as liquid assets divided by short-term liabilities, while holding encumbrance-free, low-risk assets that are easily convertible to cash. The regulation requires daily reporting commencing 30 days after publication, quarterly market-access testing through repo or outright sales, and strict eligibility criteria for qualifying assets.
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