Regulatory Alerts2024-09-01
On the Ratio between Stable Resources and Long-Term Assets of Credit Institutions
The Bank of the Republic of Burundi issued Circular No. 05/2018 to establish a minimum regulatory ratio of 60% between stable resources and long-term assets for all credit institutions. This directive mandates that banks calculate the ratio using defined components, including global net equity, specific provisions, long-term borrowings, and customer deposits against financial loans, subordinated debt, impaired receivables, and held-to-maturity securities. Effective upon publication on the Central Bank’s website and in the Official Gazette, the circular supersedes the 2014 version and requires formal declarations to be submitted to the Central Bank for compliance monitoring.
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