Regulatory Alerts2025-07-06
Regulation on Capital Adequacy 2023
The Central Bank of Somalia issued this 2023 regulation to replace its 2014 framework and establish comprehensive capital adequacy standards for all licensed banking institutions. It mandates minimum Core Capital and Total Regulatory Capital ratios of 8% and 12% respectively, while requiring institutions to maintain documented risk appetite statements, capital plans, and dedicated management structures. The regulation restricts capital distributions based on compliance thresholds, enforces monthly quantitative reporting, and takes effect on January 1, 2024.
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