Regulatory Alerts2016-12-13
Regulations Concerning Required Reserves for Bank Financial Institutions
The Central Bank of Liberia issued regulations mandating that all bank financial institutions compute and maintain required reserves based on average daily deposits over a two-week base period. The rules establish reserve requirement ratios of 25 percent for Liberian Dollar deposits and 10 percent for United States Dollar deposits, permitting daily account balances to fluctuate within a ±50 percent band around the target ratio. Institutions must satisfy both daily compliance thresholds and period-averaged targets, with a 10 percent penalty levied on any deficiency in the required reserves.
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