Regulatory Alerts2018-01-19
Framework for the Administration of the Interbank Markets (IBM)
The Central Bank of Liberia issues this framework to regulate interbank lending and foreign exchange trading by establishing mandatory membership criteria, dealer responsibilities, and ethical standards for all licensed banks. It mandates strict risk control measures, including reserve ratio compliance and collateral verification, while standardizing pricing benchmarks like the Monrovia Interbank Offer Rate (MIBOR) and enforcing transparent confirmation and settlement procedures. The Central Bank retains supervisory authority to approve or suspend members, levy penalties for infractions, and ensure continuous market integrity through rigorous monitoring of dealer conduct, confidentiality, and anti-money laundering practices.
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