Regulatory Alerts2020-10-09
Circulaire No. 116 on Standards for Coverage of Fixed Assets and Medium/Long-Term Employments
The Bank of the Republic of Haiti issued Circulaire No. 116 to mandate that financial institutions maintain a fixed asset coverage ratio of at least 100% of regulatory capital and a stable resources to medium/long-term employment ratio of at least 75%. The regulation imposes strict limits on equity participations in non-financial entities, capping individual holdings at 15% of base capital and cumulative holdings at 45%, while requiring prior notification for stakes of 5% or more. Non-compliance triggers specific financial penalties, including fines for unreliable reporting, ratio breaches, and late submission of mandatory quarterly and semi-annual reports.
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