Regulatory Alerts2000-05-24
Instruction No. 003/2000-CSBF on Credit Institutions' Commitments in Favor of Their Shareholders or Partners, Directors and Officers, Staff, and Statutory Auditors
The Banking and Financial Supervision Commission (CSBF) of Madagascar issued Instruction No. 003/2000-CSBF to regulate direct and indirect credit commitments granted by licensed institutions to their shareholders, directors, officers, staff, and statutory auditors. The regulation caps cumulative commitments at 10% of available own funds, mandates board authorization and normal market conditions for such grants, and requires quarterly reporting alongside periodic financial statements. Institutions exceeding the limit must take corrective measures within a stipulated timeframe or face sanctions, while the CSBF retains authority to grant temporary derogations.
Share