Regulatory Alerts2015-08-07
Law No. 6/2015 Establishes Rules for the Supervision and Control of Banking Institutions in São Tomé and Príncipe
The National Assembly of São Tomé and Príncipe enacted Law No. 6/2015 to establish comprehensive rules for the supervision and control of domestic banking institutions, mandating preventive, corrective, sanitation, and resolution measures to safeguard financial stability and depositor interests. The legislation empowers the Central Bank to intervene in distressed banks by enforcing recovery plans, imposing corrective actions such as capital and liquidity requirements, and appointing supervisory commissions or provisional directors when necessary. It further outlines procedures for crisis management, including temporary exemptions from prudential rules, suspension of legal executions, and coordination with foreign supervisors for cross-border banking operations.