Regulatory Alerts2016-12-13
Central Bank of Liberia Regulation Concerning Large Exposures and Concentration of Credits
The Central Bank of Liberia issued Regulation No. CBL/SD/006/2011 to cap single borrower exposures at twenty percent of a licensed bank’s net worth and restrict aggregate large exposures to fifty percent of total credit extensions. The directive mandates robust portfolio management, requires quarterly reporting of significant credits, and establishes a grace period for regularizing pre-existing transactions that exceed the new thresholds. Non-compliance triggers felony charges, mandatory restitution, potential office removal, and imprisonment or fines exceeding one million Liberian dollars for responsible bank officers.
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