Regulatory Alerts2023-10-16
Notice No. 6/GBM/2023 of 16 October - Regulation on Prudential Ratios and Limits for Mutual Guarantee Societies
The Bank of Mozambique issued Notice No. 6/GBM/2023 to approve the Regulation on Prudential Ratios and Limits for Mutual Guarantee Societies, mandating continuous compliance with specific capital adequacy, solvency, and risk concentration standards. The regulation aligns these entities with existing prudential frameworks for credit institutions while establishing distinct requirements for Tier 1 capital composition, supplementary own funds, and the classification of guarantee-related risk positions. It further stipulates that all guarantee operations must be denominated in national currency unless specific foreign currency exceptions apply, and grants the central bank authority to adjust calculation bases and issue compliance instructions.
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