Regulatory Alerts2024-09-01
Circular No. 04/2018 on the Short-Term Liquidity Ratio of Banks
The Bank of the Republic of Burundi issued Circular No. 04/2018 to establish and standardize the short-term liquidity ratio (STLR) for domestic and foreign banks operating in Burundi. The regulation mandates that banks maintain a permanent STLR of at least 100%, calculated as the ratio between their stock of High-Quality Liquid Assets and total net cash outflows over a 30-day severe stress scenario, with specific weighting rules for assets in Burundian Francs and foreign currencies. It further prescribes detailed calculation methodologies for cash inflows and outflows, reporting frequencies, data retention obligations, and enforcement mechanisms for non-compliance.
Share