Regulatory Alerts2015-01-15
Prudential Regulations on Capital Adequacy Requirements for Licensed Banks
The Central Bank of Liberia issued Prudential Regulation No. CBL/RSD/003/2013 to replace prior capital rules and establish comprehensive capital adequacy requirements for all licensed banks. The framework defines eligible Tier 1 and Tier 2 capital, introduces a minimum Tier 1 requirement, and mandates the Standardized Approach for risk-weighting on- and off-balance sheet exposures. Banks must calculate and report their capital adequacy ratios quarterly, with CEO-signed reports audited externally, to ensure sufficient loss-absorbing capacity and protect customer deposits.
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