Regulatory Alerts2015-02-12
Permanent Application Standard (NAP) - Interbank Money Market (IMM)
The Central Bank of São Tomé and Príncipe issued this Permanent Application Standard to regulate the domestic Interbank Money Market (IMM), establishing rules for unsecured and secured fund exchanges between authorized financial institutions. The regulation mandates bilateral negotiation, BCSTP-mediated settlement, specific collateral eligibility, and strict communication deadlines to ensure liquidity efficiency and mitigate settlement risk. It further outlines default procedures, including a 2% annual penalty interest rate, suspension or exclusion for repeat violations, and mandatory statistical reporting by the Central Bank.
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