Regulatory Alerts1994-12-29
Instruction No. 003/94/CCBEF of December 29, 1994 on the Division of Risks for Banks and Financial Institutions
The Commission for the Control of Banks and Financial Institutions (CCBEF) of Madagascar issued Instruction No. 003/94 to establish a permanent risk division ratio limiting exposure to any single beneficiary at 70% of available own funds, reducible to 40%. The regulation mandates licensed banks and financial institutions to calculate risks across clients and credit institutions, apply specific weighting rates (20% to 100%), and deduct supplementary provisions and approved guarantees. Institutions must submit monthly risk statements, regularize any breaches by April 1995, and comply with phased limits effective September 1995 and 1996.
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