Regulatory Alerts2015-01-15
Regulations for Non-Bank Financial Institutions (NBFIs)
The Central Bank of Liberia has promulgated these regulations to establish a comprehensive licensing and operational framework for non-bank financial institutions that provide credit without accepting public deposits. The rules mandate a minimum capital of US$2 million, enforce a 10% capital adequacy ratio, and require strict adherence to licensing procedures, corporate governance standards, and consumer protection measures such as transparent interest rate displays and legally binding loan contracts. Licensed entities must comply with ongoing obligations including a US$5,000 annual operating levy, periodic financial reporting, and branch expansion approvals, while facing license revocation for non-compliance with capital, governance, or operational directives.