Regulatory Alerts2021-01-21
Regulation No. 37/2021 on the Application of the Proportionality Principle to Banks
The National Bank of Rwanda issued Regulation No. 37/2021 to implement the proportionality principle, adjusting supervisory intensity and compliance requirements based on each bank's risk profile, complexity, business model, and asset size. The regulation classifies institutions into Level I and Level II, mandating specific board committees, independent director ratios, separated risk-compliance functions for larger banks, and tailored annual submissions of internal capital and liquidity adequacy assessments. It further establishes distinct operational rules for cooperative and development banks, including capped exposures to related parties, optional public financial disclosures, and specific net open position requirements.
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