Regulatory Alerts2017-09-15
Regulation on Interest Rate Determination, Display, and Lending Rate Computation
The Central Bank of Liberia issued Regulation No. CBL/RSD/005/2017 to mandate that licensed financial institutions determine interest rates and charges based on market forces while applying the declining-balance computation method. Financial institutions must prominently display prospective schedules of fees, commissions, and lending rates at all business locations and on their websites, while providing customers with detailed pre-contract disclosures and full-tenor repayment schedules. Non-compliant institutions face a daily fine of L$100,000 and potential additional penalties for persistent violations, with monthly reporting of fee schedules required to the Central Bank.
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