Regulatory Alerts2024-09-01
Added · Updated
Circular No. 03/2018 on Capital Adequacy and Leverage Ratios for Credit Institutions
Circular No. 03/2018 establishes minimum solvency and leverage ratios for credit institutions in Burundi, requiring a minimum Common Equity Tier 1 ratio of 8.5%, a minimum Tier 1 ratio of 10%, and a minimum Total Capital ratio of 12%, along with a 2.5% capital conservation buffer. It mandates a minimum leverage ratio of 5% and defines risk-weighted asset calculations for credit, market, and operational risks using standard and basic indicator approaches. The regulation requires monthly reporting of these ratios to the Bank of the Republic of Burundi and quarterly public disclosure, while allowing the central bank to impose additional buffers or higher ratios based on systemic importance or specific risk criteria.
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