Circular N° 002/2025-CSBF Setting the Modalities of Application of Instruction N° 002/2023-CSBF of October 23, 2023, Relating to Liquidity Ratios for Banks and Financial Institutions

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CENTRAL BANK OF MADAGASCAR BANKING AND FINANCIAL SUPERVISION COMMISSION

CIRCULAR N° 002/2025-CSBF SETTING THE MODALITIES OF APPLICATION OF INSTRUCTION N° 002/2023-CSBF OF OCTOBER 23, 2023, RELATING TO LIQUIDITY RATIOS FOR BANKS AND FINANCIAL INSTITUTIONS

The President of the Banking and Financial Supervision Commission (CSBF),

Having regard to Law n° 2020-011 of September 1, 2020, on banking law,

Having regard to Decree n° 2023-011 of January 4, 2023, appointing the Governor of Banky Foiben'i Madagasikara,

Having regard to Instruction n° 002/2023-CSBF of October 23, 2023, relating to liquidity ratios for banks and financial institutions,

Sets the modalities of application of the aforementioned Instruction n° 002/2023-CSBF as follows:

1. By derogation from the provisions of Article 2, 13th and 14th indents of the instruction, the definitions of SMEs, micro-enterprises, and retail customers are those currently applied by banks and financial institutions until new definitions relating thereto are determined.

2. The provisions of the following articles of the instruction, targeting banking service providers and credit institutions, also apply to foreign correspondents:

• Article 7.1;
• Article 7.2, 1st indent, last point;
• Article 7.6, 5th indent;
• Article 8.2, 1st indent, 5th point;
• Article 8.2, 2nd indent.

3. "Operational deposits from electronic payment institutions and other banking service providers" weighted at 25% for cash outflows, as stipulated in Article 7.2 of the instruction, include the global accounts of banks engaged in electronic money issuance held within depository banks.

4. The balances of clients' electronic money accounts provided for in Article 7.4 of the instruction concern the balance of electronic money in circulation.

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5. For the application of Article 8.2 of the instruction:

• receivables related to all elements referred to in Article 8.2 are to be included in cash inflows;
• collection accounts referred to in the 1st indent, 7th point, to be recovered include asset accounts referred to in the following PCEC headings: • 33 – Collection Account; • 102 – Values to be cleared; • 109 – Other cash values, excluding electronic money stocks.

6. The declarations provided for in Articles 12 and 13 of the instruction are communicated to the General Secretariat of the CSBF via the BSA "Banking Supervision Application" remote declaration system, according to the following frequencies:

• monthly, according to the model in Annex 1, for the LCR ratio declaration statement and the external ratings statement;
• quarterly, according to the models in Annex 2, for the NSFR ratio declaration statement, the schedules of assets - liabilities with contractual maturities according to the remaining term, the statement of monitoring of resource concentration, and the statement of monitoring of LCR by significant currency.

This circular, of which the annexes are an integral part, enters into force upon its notification to the Professional Association of Banks and financial institutions and upon its publication on the website of Banky Foiben'i Madagasikara.

Done in Antananarivo, June 25, 2025

For the Banking and Financial Supervision Commission, The President, Aivo H. ANDRIANARIVELO Governor of Banky Foiben'i Madagasikara

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