Regulatory Alerts2018-10-29
Notice No. 10/GBM/2018, of 29 October – Domestic Systemically Important Credit Institutions
The Bank of Mozambique issues Notice 9/GBM/2018 to strengthen financial system resilience by mandating maximum Loan-to-Value (LTV) and Debt-to-Income (DTI) ratios of 100% for all credit institutions when assessing borrower creditworthiness. Concurrently, Notice 10/GBM/2018 establishes a macroprudential scoring methodology to identify Domestic Systemically Important Banks (D-SIBs) and Quasi-Systemically Important institutions based on size, interconnectedness, and substitutability. Institutions classified as D-SIBs or Quasi D-SIBs are required to maintain tiered conservation capital buffers ranging from 1.0% to 5.0% of Tier 1 and 2 capital, with annual publications and compliance monitoring enforced by the central bank.
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