Regulatory Alerts2012-04-02
Instruction 10_GR_2012 on the Equilibrium Ratio Between Net Equity and Fixed Assets
The Central Bank of Mauritania issued Instruction 10_GR_2012 to mandate a minimum 100% equilibrium ratio between net equity and fixed assets for all credit institutions. The directive defines the numerator as net equity under existing capital rules, while specifying that tangible fixed assets, retained equity stakes, and net doubtful receivables form the denominator. Credit institutions may request exemptions for active venture capital operations or collateralized properties held within two years, face disciplinary sanctions for non-compliance, and benefit from a two-year transitional grace period.
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