Regulatory Alerts2023-10-23
INSTRUCTION No. 002/2023-CSBF on the Liquidity Ratios of Banks and Financial Institutions
The Banking and Financial Supervision Commission (CSBF) of Madagascar has issued Instruction No. 002/2023-CSBF to mandate that banks and financial institutions maintain a minimum 100% Short-term Liquidity Ratio (LCR) and Long-term Liquidity Ratio (NSFR). The directive establishes detailed calculation methodologies, asset and liability weighting coefficients, and monitoring tools for high-quality liquid assets, cash flows, and stable funding, while requiring monthly LCR and quarterly NSFR reporting. A phased implementation schedule is set, requiring institutions to reach 75% compliance by June 2024, 85% by January 2025, and full 100% compliance by June 2025, with non-compliance subject to corrective measures and regulatory sanctions.
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