Regulatory Alerts2017-05-30
Regulations Concerning Emergency Liquidity Assistance (ELA)
The Central Bank of Liberia has issued Regulations No. CBL/RSD/003/2017 to establish a formal framework for providing Emergency Liquidity Assistance (ELA) to solvent, deposit-taking financial institutions facing temporary liquidity shortfalls. Eligible institutions must demonstrate that their potential failure threatens systemic stability, maintain solvency and viability, and present a feasible exit strategy while minimizing moral hazard. The regulations outline a clear application process requiring collateral, financial statements, and board resolutions, while granting the Central Bank full discretion to set penal interest rates, assess risks, and enforce strict conditionality.
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