Regulatory Alerts2023-03-27
Regulation No. 59/2023 Determining Credit Classification and Provisioning Rules for Deposit-Taking Microfinance Institutions
The National Bank of Rwanda issued Regulation No. 59/2023 to establish standardized credit classification and provisioning frameworks for deposit-taking microfinance institutions. The regulation mandates the classification of loan portfolios into five distinct risk categories—normal, watch, substandard, doubtful, and loss—based on explicit repayment criteria and collateral valuation. It further requires boards and management to implement systematic risk assessment processes, maintain adequate loss reserves, and adhere to specific protocols for loan restructuring, write-offs, and non-performing loan reporting.
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