Regulatory Alerts2022-12-09
Localisation: Instruction No. 106 on Capital Requirements for Credit Institutions
The Central Bank of the Republic of Guinea (BCRG) issued Instruction No. 106 to establish comprehensive capital adequacy requirements and risk-weighted asset calculations for all credit institutions. The regulation mandates minimum ratios of 6.5% for basic own funds, 8% for category 1 own funds, and 10% for net own funds against weighted risks, while introducing counter-cyclical, conservation, and systemic buffers ranging up to 2.5%. It further details risk-weighting methodologies for sovereigns, public bodies, multilateral banks, enterprises, retail exposures, and specialized financing, specifying external rating applications, short-term treatment, and loan-to-value adjustments for real estate collateral.
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