Regulatory Alerts2017-06-05
Notice No. 9/GBM/2017 of June 5 Approves the Regulation on Prudential Ratios and Limits for Credit Institutions and Revokes Notice No. 15/GBM/2013 of December 31
The Bank of Mozambique issued Notice No. 9/GBM/2017 to approve the Regulation on Prudential Ratios and Limits for Credit Institutions, updating capital adequacy requirements to align with evolving national economic risks. The Regulation establishes continuous compliance obligations and defines precise thresholds for total, core, and supplementary own funds, alongside specific solvency ratios of 12% for banks and 8% for other credit institutions. It further mandates strict limits on risk concentration, cross-border branch coverage, shareholdings, foreign exchange positions, and liability coverage, while providing a phased two-year adaptation period for existing banks to meet the new capital standards.
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