Regulatory Alerts2018-02-15
Instruction No. 001-DOM/2018 on the Compliance with the Solvency Ratio by Participants Eligible for the Money Market
The Governor of Banky Foiben'i Madagasikara issues Instruction No. 001-DOM/2018, requiring credit institutions designated as "Eligible Participants" in the money market to maintain a prescribed solvency ratio. Non-compliant institutions face immediate, automatic suspension from money market trading beginning the first business day of month M+2, which is lifted upon demonstrated solvency regularization before month M+2 ends. During suspension, existing transactions mature and are settled as agreed, but the affected institutions are barred from executing new trades, with formal notification handled by the bank's monetary policy department.
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