Regulatory Alerts2022-12-26
Instruction No. 003/2022-CSBF of December 20, 2022 on the Capital Requirements for Credit Institutions
The Banking and Financial Supervision Commission (CSBF) of Madagascar has issued Instruction No. 003/2022-CSBF to establish comprehensive capital requirements for credit institutions, excluding microfinance entities. The directive mandates a minimum 8% solvency ratio composed of credit, operational, and market risk components, while introducing specific capital buffers, leverage ratios, and risk-weighting frameworks aligned with international standards. It further stipulates strict reporting obligations, defines eligible collateral and guarantee deductions, and outlines enforcement mechanisms including profit distribution restrictions and disciplinary sanctions for non-compliance.
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