Regulatory Alerts2023-10-09
Added · Updated
Banking and Financial Institutions (Liquidity Management) Regulations 2023
These Regulations apply to all banks and financial institutions, requiring them to adopt sound liquidity management policies, submit contingency plans, and maintain specific liquidity ratios. Entities must maintain minimum liquid assets of twenty percent of demand liabilities, a liquidity coverage ratio of one hundred percent of total net cash outflows, and a net stable funding ratio of one hundred percent. Existing institutions are granted a fifty-four-month moratorium to comply with the coverage and funding ratios, with interim targets of seventy, eighty, and ninety percent at eighteen, thirty, and forty-two months respectively. The Bank may impose sanctions for non-compliance, including penalties, suspension of operations, or revocation of licenses, and the 2014 Regulations are revoked.