Regulatory Alerts2022-09-21
Regulation Concerning Non-Bank Credit-Only Institutions (NBCOs)
The Central Bank of Liberia has issued Regulation No. CBL/RSD/001/2021 to establish a comprehensive licensing framework for non-bank credit-only institutions, including finance companies, mortgage finance companies, and microcredit institutions. The regulation mandates that existing providers apply for licenses within ninety days while new entrants must secure approval before commencing operations, detailing capital escrow requirements, board eligibility, and premises standards. It further outlines ongoing compliance obligations, consumer protection standards, annual levies, and specific grounds for license suspension or revocation to ensure financial system stability.
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