Regulatory Alerts2005-03-31
Guidelines on the Computation and Maintenance of Reserve Requirements
The Central Bank of Liberia issues these guidelines to standardize how commercial banks compute and maintain reserve requirements based on the average deposits of the preceding month. Banks must submit monthly deposit returns by the tenth of each month, after which the Central Bank calculates and notifies the required 22% reserve amount to be maintained from the fifteenth of one month through the fourteenth of the next. Financial institutions that fail to maintain the required reserves face an 18% penalty on the deficiency, which is payable as designated and may be recovered through deductions from other Central Bank balances.
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