Regulatory Alerts2022-04-12
Guidelines Concerning Digital Credit for Financial Institutions
The Central Bank of Liberia issued these guidelines to establish comprehensive internal control, consumer protection, and credit risk management standards for all licensed financial institutions offering digital credit. The regulations mandate a US$400 loan cap, require detailed product approval applications and transparent alternative disclosures detailing APRs and fees, and prohibit unfair contract clauses, excessive bundling, and automatic loan extensions without explicit consumer consent. Providers must implement robust risk frameworks, share borrower data to prevent cross-institutional delinquency, and adhere to strict complaint resolution timelines while submitting monthly portfolio reports to the central bank.
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