Regulatory Alerts2022-07-29
Circular No. 03/EFI/2022, of July 29 – Informational Elements of Recovery Plans
The Bank of Mozambique issued Circular No. 03/EFI/2022 to establish mandatory guidelines for financial institutions preparing recovery plans. The circular mandates that these plans follow a standardized structure detailing strategic analysis, non-exhaustive recovery indicators across capital, liquidity, profitability, and asset quality, and comprehensive stress scenario testing. It further requires institutions to document non-exhaustive recovery strategies, their feasibility, implementation timelines, and associated governance and communication protocols to ensure timely correction of financial distress.
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