Regulatory Alerts2017-08-24 | 29782Added · Updated
Changes in Monetary Policy and Prescribed Liabilities
The Central Bank of Trinidad and Tobago expanded the definition of prescribed liabilities to include local currency deposits and various credit and fundraising instruments, effective April 15, 1998. The cash reserve ratio for commercial banks was reduced to 21 percent of these expanded liabilities, while non-bank financial institutions maintained a 9 percent ratio. A supplementary 5 percent balance requirement in the form of treasury bills or cash applies to the expanded scope for commercial banks. The Central Bank imposed daily interest charges on deficiencies in reserve accounts, with rates doubling for deficiencies exceeding one week.
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