Regulatory Alerts2024-09-01
Circular No. 09/2018 on the Acquisition and Holding of Shareholdings by Credit Institutions Issued Pursuant to Law No. 1/17 of August 22, 2017 Governing Banking Activities
The Banque de la République du Burundi issued Circular No. 09/2018 to establish the conditions, authorization process, and quantitative limits for credit institutions acquiring or holding shareholdings in other companies. The regulation mandates prior central bank approval, requires submission of detailed financial and strategic documentation, and caps individual shareholdings at 10% of core own funds, aggregate holdings at 30%, and stakes in target companies at 20%. Replacing the 2006 circular, these rules take effect upon publication on the central bank’s website and in the official gazette.
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