Regulatory Alerts2023-12-04
Regulation No 80/2023 on Bank Related Party Transactions and Credit Concentration Risk
The National Bank of Rwanda issued Regulation No 80/2023 to establish prudential rules governing transactions between banks and their related parties, superseding previous guidelines. The regulation defines related and interconnected entities, mandates arm’s length pricing, sets specific limits for large exposures, and prescribes acceptable collateral and credit risk mitigation strategies. It further requires banks to implement robust reporting mechanisms, secure board approval for significant transactions, and adhere to administrative and pecuniary sanctions for non-compliance.
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