Regulatory Alerts2017-04-03
Notice No. 9/GBM/2017 of April 3 - Regulation on Prudential Ratios and Limits for Credit Institutions
The Bank of Mozambique issued Notice No. 9/GBM/2017 to update prudential ratios and limits for credit institutions, aligning them with evolving national economic risks. The regulation mandates continuous compliance with specific capital adequacy thresholds, including minimum 80% Tier 1 capital for banks and 50% for other institutions, alongside strict solvency ratios of 12% (global) and 10% (base) for banks. It further establishes comprehensive limits on risk concentration, qualified shareholdings, foreign exchange positions, and fixed asset acquisitions, while providing a phased three-year compliance schedule for existing banks.
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