Regulatory Alerts2019-11-08
Addendum 1 to Prudential Standards No. 02-2016/BSD for Deposit-Taking Microfinance Institutions
The Reserve Bank of Zimbabwe issued this November 2019 addendum to amend Sections 14.4 and 14.5 of its Prudential Standards for Deposit-Taking Microfinance Institutions (DTMFIs). The amendment establishes a maximum lending limit of twenty-five percent of capital base to a single borrower, with a seventy-five percent aggregate cap for corporate groups, while introducing detailed criteria for combining loans under common enterprises. These revised lending limits and risk management requirements take effect immediately upon issuance, requiring DTMFIs to maintain ongoing compliance with the updated portfolio composition rules.
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