Regulatory Alerts2018-01-19
Guidelines on Repurchase and Reverse Repurchase Agreements
The Central Bank of Liberia issued these guidelines to establish regulatory requirements for repurchase and reverse repurchase transactions conducted by licensed banks. The document mandates the transfer of legal title, restricts transaction tenures to a maximum of 180 days, and defines eligible securities based on domestic issuance or specific international credit ratings. Furthermore, it requires licensed banks to implement robust risk management practices, including prudent haircuts and daily mark-to-market valuations, while ensuring all transactions are properly documented, reported, and settled through designated clearing systems.
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