Regulatory Alerts2013-10-01
Guidelines for Supervisory Intervention
The Central Bank of Liberia issued these guidelines to establish clear thresholds and corresponding supervisory actions for banks exhibiting weaknesses that threaten their safety and soundness. The document defines specific capital adequacy, liquidity, earnings, internal control, and asset quality metrics that trigger interventions such as mandatory capital injections, dividend restrictions, management takeovers, and license revocation. Replacing the 2005 distressed bank regulations, the guidelines mandate a three-month compliance period and empower regulators to enforce timely, transparent measures until deficiencies are resolved.
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