Regulatory Alerts2007-01-09
Decree No. 2007-013 on the Minimum Capital of Credit Institutions and the Nominal Value of Participation Shares
Issued by the Prime Minister of Madagascar, Decree No. 2007-013 establishes the minimum paid-up capital and nominal share values for credit institutions and microfinance institutions (MFIs) operating within the country. The decree classifies MFIs into three levels and specifies tiered capital requirements ranging from one billion to two hundred million ariary depending on their legal structure, authorization status, and network affiliation. It further mandates that existing institutions comply within two years (with possible six-month extensions), grants the Banking and Financial Supervision Commission authority to require higher capital based on prudential rules, and sets a uniform twenty thousand ariary nominal value for most equity instruments.