Regulatory Alerts2007-08-06
Regulation (NAP) - Standard on Bank Liquidity
The Central Bank of São Tomé and Príncipe issued this Permanent Application Standard to mandate that authorized financial institutions maintain adequate liquidity by preserving a balanced asset-liability structure and adhering to strict foreign currency and internal control requirements. The regulation establishes a minimum 20% Liquidity Ratio, defines eligible highly liquid assets, and sets cumulative cash flow limits across daily to annual periods. Banks are required to implement robust internal management policies, submit monthly liquidity calculations and cash flow reports by the 10th day of each month, and ensure continuous public disclosure of their financial health.
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