INSTRUCTION NO. 002/99-CSBF amending INSTRUCTION NO. 003/94/CCBEF of December 29, 1994 regarding the division of risks for banks and financial institutions

INSTRUCTION NO. 002/99-CSBF amending INSTRUCTION NO. 003/94/CCBEF of December 29, 1994 regarding the division of risks for banks and financial institutions

The Banking and Financial Supervision Commission (CSBF) of the Republic of MADAGASCAR,

Having regard to Law No. 95-030 of February 22, 1996 on the activity and supervision of credit institutions,

Having regard to Instruction No. 008/CR/94 of May 11, 1994 on the available own funds of banks and financial institutions,

Having regard to Instruction No. 003/94/CCBEF of December 29, 1994 on the division of risks for banks and financial institutions,

In application of the provisions of Article 41 of the aforementioned Law No. 95-030, which empower the CSBF to set the management standards that credit institutions must comply with, in particular to ensure their liquidity, solvency and the balance of their financial structure,

DECIDES

Article 1. - Article 8 of Instruction No. 003/94/CCBEF of December 29, 1994 on the division of risks for banks and financial institutions is amended as follows:

"New Article 8: Subjected establishments must be able to justify at all times that the ratio between the total amount of risks incurred on a single beneficiary and available own funds, known as the risk division ratio, is 35% effective January 1, 2000, and 30% effective January 1, 2001."

Article 2. - All prior and contrary provisions are hereby repealed.

Done in Antananarivo, on July 22, 1999.

For the Banking and Financial Supervision Commission, The President