Regulatory Alerts2025-06-10
CBS Capital Adequacy Regulation 2023
The Central Bank of Somalia has issued the 2023 Capital Adequacy Regulation to establish comprehensive capital requirements for all licensed financial institutions on a stand-alone basis. It mandates minimum Core Capital and Total Regulatory Capital ratios of 8% and 12% respectively, while requiring institutions to implement structured risk management frameworks, including Risk Appetite Statements and capital contingency plans. The regulation further restricts voluntary capital distributions based on compliance thresholds, enforces monthly reporting of risk-weighted assets, and takes effect on January 1, 2024.
Share