Regulatory Alerts2017-04-03
Notice No. 8/GBM/2017 of April 3 – Regulation on the Own Funds of Credit Institutions
The Bank of Mozambique issued Notice No. 8/GBM/2017 to align regulatory own funds calculation requirements for credit institutions, approving a comprehensive regulation that defines the composition, calculation methods, and deduction rules for basic and supplementary own funds. The regulation mandates that all supervised institutions apply standardized positive and negative element classifications, with specific adaptations for entities preparing financial statements under International Financial Reporting Standards. It establishes precise eligibility criteria, consolidation methodologies, and phased reduction programs for subordinated loans, preference shares, and other qualifying instruments to ensure robust risk coverage and prudential compliance.