Regulatory Alerts2016-01-01
Financial Institutions (Agent Banking) Regulations, 2016
Issued by the Governor of the Central Bank of Lesotho, these regulations mandate licensed banks to maintain minimum reserve balances and liquid asset ratios while implementing robust liquidity risk management frameworks. The rules require institutions to conduct annual stress tests, submit weekly and monthly liquidity reports, and publicly disclose all applicable bank charges and interest rates at branches, points of service, and online. Non-compliant banks face financial penalties, corrective directives such as dividend restrictions or system revamps, and potential management suspension to ensure market stability and consumer transparency.
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