Instruction No. 001/2007/CSBF of 11 May 2007 on the Foreign Exchange Position Ratio of Credit Institutions

COMMISSION FOR BANKING AND FINANCIAL SUPERVISION

INSTRUCTION No. 001/2007-CSBF on the foreign exchange position ratio of credit institutions

The Commission for Banking and Financial Supervision (CSBF),

Having regard to Law No. 95-030 of 22 February 1996 on the activity and supervision of credit institutions, as amended,

Having regard to Instruction No. 001/00-CSBF of 1 February 2000 on the available own funds of credit institutions,

Having regard to Instruction No. 001/98-CSBF of 23 September 1998 on the foreign exchange positions of credit institutions, as amended by Instruction No. 001/99-CSBF of 23 February 1999 and by Decision No. 001/2004-CSBF/P of 17 March 2004,

Pursuant to the provisions of Article 41 of the aforementioned Law No. 95-030, which empower the CSBF to establish management standards that credit institutions must comply with, in particular to ensure their liquidity, solvency, and the balance of their financial structure,

DECIDES:

Article 1. The foreign exchange position ratio for credit institutions is increased from 10% to 20%, effective 1 June 2007.

Article 2. All prior and contrary provisions are hereby repealed, including those of Decision No. 001/2004-CSBF/P of 17 March 2004.

Done in Antananarivo, on 11 May 2007.

For the Commission for Banking and Financial Supervision, THE PRESIDENT,

Frédéric RASAMOELY

c/o CENTRAL BANK OF MADAGASCAR - P.O. Box 550 - Tel 22 642 26 - 22 627 81 - 22 236 73 - Fax 22 279 14 - FIARO Building, Ampefiloha