Regulatory Alerts2023-12-04
Regulation No. 81/2023 on Major Investments and Placements of Banks
The National Bank of Rwanda issued Regulation No. 81/2023 to establish prudential limits and approval mechanisms for banks' major investments in immovable properties, equity shares, and financial instruments. The regulation caps aggregate investments in immovable properties at 50 percent and equity shares at 25 percent of a bank's core capital, while defining a major investment as any holding exceeding five percent of that capital. Banks must obtain prior Central Bank approval for such investments, submit detailed applications demonstrating project viability and liquidity safeguards, and comply with reporting obligations to mitigate concentration risks across the banking sector.
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