Regulatory Alerts2005-02-23
Regulations on Supervision of Distressed Banks
The Central Bank of Liberia issued Prudential Regulation No. CBL/SD/02/2005 to establish a comprehensive framework for supervising, restructuring, and resolving distressed banks. The regulation defines specific capital adequacy and liquidity thresholds to classify institutions as undercapitalized, critically undercapitalized, or illiquid, triggering progressive enforcement actions such as Direct Supervisory Intervention and Regulatory Forbearance. It mandates time-bound corrective measures, outlines procedures for Provisional Administration and liquidation, and imposes fines of at least L$200,000 per infraction for non-compliance.
Share