Regulatory Alerts2020-11-25
Instruction No. 009-DOM/20 of November 25, 2020, amending certain provisions of Instruction No. 009-DOM/19 of October 25, 2019, relating to the mandatory reserve system
The Governor of the Central Bank of Madagascar issued Instruction No. 009-DOM/20 to amend Articles 1, 2, and 3 of the October 2019 mandatory reserve system directive. The revised provisions mandate that credit institutions submit reserve declarations to the Central Bank by deadlines set in an annually published schedule, with reserves calculated on liability bases finalized two months prior (m-2). The updated annual submission calendar, detailing period dates, reference dates, and declaration deadlines, must be shared with the Professional Association of Banks and published on the Central Bank’s website by the first business day of December for the following year, with the instruction taking effect on January 1, 2021.
CENTRAL BANK OF MADAGASCAR
DIRECTORATE OF MONETARY OPERATIONS
INSTRUCTION NO. 009-DOM/20 amending certain provisions of Instruction No. 009-DOM/19 relating to the mandatory reserve system
The Governor of the Central Bank of Madagascar,
Having regard to Law No. 95-030 of February 22, 1996, relating to the activity and supervision of credit institutions, as amended,
Having regard to Law No. 2016-004 of July 29, 2016, supplemented by Law No. 2016-057 of February 2, 2017, establishing the Statutes of the Central Bank of Madagascar,
Having regard to Decree No. 2019-2069 of November 6, 2019, repealing the provisions of Decree No. 2014-1684 of October 29, 2014, appointing the Governor of the Central Bank of Madagascar and appointing the Governor of the Central Bank of Madagascar,
Having regard to Instruction No. 008-DOM/19 of October 25, 2019, relating to the general framework governing mandatory reserves,
Having regard to Instruction No. 009-DOM/19 of October 25, 2019, relating to the mandatory reserve system,
HEREBY DECIDES
Article 1: This Instruction aims to amend the provisions of Articles 1, 2, and 3 of Instruction No. 009-DOM/19 of October 25, 2019, relating to the mandatory reserve system.
Article 2: The provisions of Articles 1, 2, and 3 of Instruction No. 009-DOM/19 of October 25, 2019, relating to the mandatory reserve system, are amended as follows:
« Article 1 (new): In accordance with Article 6 of Instruction No. 008-DOM/19 of October 25, 2019, relating to the general framework governing mandatory reserves, credit institutions subject to the provision of mandatory reserves shall submit their related declarations to the BFM by the deadlines specified in an annual submission schedule previously communicated and published by the BFM. »
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« Article 2 (new): Pursuant to Article 7 of Instruction No. 008-DOM/19 of October 25, 2019, relating to the general framework governing mandatory reserves, mandatory reserves shall be calculated based on the bases finalized at the end of the month (m-2), in accordance with the annual submission schedule published by the BFM. »
« Article 3 (new): The annual schedule for the provision of mandatory reserves for year (n+1) shall be communicated to the Professional Association of Banks (APB) with a copy to each member and published on the BFM website on the first business day of December of the year preceding its implementation. This schedule includes the start and end dates of the period, the reference date serving as the basis for calculating the reserves to be provided, as well as the declaration deadline. »
Article 3: Entry into force
This Instruction shall enter into force on January 1, 2021.
Article 4: Final provisions
All prior provisions contrary to this Instruction are hereby repealed and remain repealed.
Antananarivo, November 25, 2020
THE GOVERNOR HENRI EDMOND RABARIJOHN
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