Regulatory Alerts2011-01-14
Finance Lease Regulations for Bank-Financial Institutions
Issued by the Central Bank of Liberia under the Financial Institutions Act of 1999, these regulations mandate that licensed bank-financial institutions obtain prior regulatory approval and demonstrate operational capacity before conducting finance lease business. The framework establishes strict formalities for lease agreements, requires quarterly portfolio reviews and robust credit risk management, and dictates specific accounting treatments that classify leased assets as investments rather than property or equipment. Compliance is enforced through a centralized lease registry, mandatory periodic reporting to the Regulation and Supervision Department, and daily non-compliance fines of at least L$200,000 alongside potential supervisory sanctions.