Regulatory Alerts2004-06-07
Directive Removing Restriction on Inter-Bank Trading and Transactions
The Central Bank of Liberia has lifted its prohibition on inter-bank operations, effective immediately, to foster market development and strengthen the financial services sector. Financial institutions may now trade foreign exchange and bank balances, as well as lend to one another against adequate security for periods not exceeding thirty days and capped at five percent of the relevant party's networth. All participating banks must record these activities in an inter-bank trading book and submit monthly reports detailing the counterparty, transaction nature, amount, currency, and other pertinent data.
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