Regulatory Alerts2018-04-02
Instruction No. 01_GR_2018 on Minimum Capital and Net Own Funds Calculation Rules for Credit Institutions
The Central Bank of Mauritania issued Instruction No. 01_GR_2018 to establish the minimum capital requirements and detailed calculation rules for net own funds of Mauritanian credit institutions. The regulation mandates that banks maintain a minimum capital of one billion ouguiyas and financial institutions one hundred million, while defining net own funds as the sum of basic and supplementary capital subject to strict eligibility criteria, deduction rules, and solvency ratios of 7.5% for basic funds and 10% overall against risk-weighted exposures. It further introduces mandatory conservation, countercyclical, and systemic buffers, caps profit distributions when buffers are underfunded, and supersedes prior regulatory provisions effective upon signature.