Regulatory Alerts2023-01-01
Financial Institutions (Computation of Capital Charge for Credit, Operational and Market Risks) Regulations 2023
Issued by the Lesotho Commissioner of Financial Institutions, these 2023 regulations establish comprehensive rules for calculating capital charges covering credit, operational, and market risks. The framework mandates licensed banks to maintain adequate Tier I and Tier II capital, apply standardized risk weights, and utilize approved credit risk mitigation techniques such as collateralization and netting. Applicable to all domestic banks on solo and consolidated bases, the regulations standardize capital adequacy assessments, clarify board responsibilities, and ensure consistent regulatory capital quality to safeguard depositor interests.
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