Regulatory Alerts2018-12-27
National Bank of Rwanda Regulation No. 2310/2018 on Capital Requirements for Banks
The National Bank of Rwanda issued Regulation No. 2310/2018 to establish comprehensive capital requirements for banks, applying to both solo and consolidated operations. The regulation defines core (Tier 1) and total capital, mandating minimum ratios of 10% and 12.5% respectively against risk-weighted assets, alongside mandatory capital conservation, countercyclical, and systemic risk buffers. It further specifies eligibility criteria for capital instruments, required deductions, and a tiered framework of prompt corrective actions that the Central Bank must enforce as banks transition from adequately to critically undercapitalized status.
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