Regulatory Alerts2024-10-01
Circular Annex 9
The regulatory authority issued Circular Annex 9 to establish standardized accounting frameworks and prudential ratios for microfinance institutions. It mandates detailed reporting structures for balance sheets, income statements, cash flows, and off-balance sheet commitments, while defining precise calculation methodologies for liquidity, solvency, and risk concentration limits. The document sets mandatory minimum and maximum thresholds for key financial metrics, including a 20% immediate liquidity ratio, a 100% medium-to-long-term funding coverage ratio, and strict caps on single-borrower and internal lending exposures.
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