Regulatory Alerts2019-10-25
Instruction No. 008-DOM/19 on the General Framework Governing Mandatory Reserves
The Governor of Banky Foiben'i Madagasikara (BFM) issued Instruction No. 008-DOM/19 to establish the general framework governing mandatory reserves as a core monetary policy instrument. The directive mandates that authorized credit institutions maintain minimum non-interest-bearing deposits with BFM, calculated based on resident and non-resident Ariary and foreign currency assets and liabilities detailed in the annex. It outlines specific calculation bases, reporting procedures, and a tiered penalty system for reserve shortfalls, including escalating fines and potential referral to the Banking and Financial Supervision Commission, while repealing all prior provisions effective November 1, 2019.
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