Regulatory Alerts2024-04-05
Law Governing Deposit-Taking Microfinance Institutions
The supervisory authority issued Law No 072/2021 to establish a comprehensive regulatory framework for deposit-taking microfinance institutions. The legislation mandates standardized licensing procedures, prudential standards including liquidity and capital adequacy ratios, and structured governance with clear risk management obligations. It further empowers regulators to conduct consolidated oversight, enforce recovery plans and appoint special administrators during financial distress, and impose administrative sanctions for non-compliance.
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