Regulatory Alerts2014-03-17
Instruction No. 001/2014-CSBF on the Shareholding of a Territorial Bank
The Banking and Financial Supervision Commission (CSBF) of Madagascar issued Instruction No. 001/2014-CSBF to mandate that all territorial banks secure a reference financial partner within their shareholding structure. This instruction requires the partner to hold blocking minority voting rights, possess internationally recognized financial capacity and banking expertise, and submit a formal letter of comfort committing to long-term participation, ongoing financial support, and active governance oversight. Existing territorial banks are granted an eighteen-month compliance period from the instruction's notification date, while new applicants must demonstrate full adherence to these capital and management requirements during their approval process.