Regulatory Alerts2017-06-02
Notice No. 8/GBM/2017 of June 2 - Approves the Own Funds Regulation for Credit Institutions and Revokes Notice No. 14/GBM/2013 of December 31
The Bank of Mozambique issued Notice No. 8/GBM/2017 to approve the Own Funds Regulation for Credit Institutions, replacing the 2013 framework with updated capital calculation methodologies. The regulation defines core and supplementary own funds, specifies eligible positive and negative equity elements, mandates strict exclusions for unrealized gains and losses, and establishes detailed deduction rules for holdings, non-financial assets, and securitization risks. Additionally, Notice No. 7/GBM/2017 simultaneously raises minimum capital requirements for banks to 1.7 billion MT and sets a three-year compliance schedule, while imposing stricter conditions on subordinated debt, preference shares, and risk concentration limits.
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