Regulatory Alerts2014-01-01
Prudential Liquidity Requirements for Deposit Taking Microfinance Institutions Directive 2014
The Registrar of Financial Institutions issued this Directive to establish prudential liquidity standards for deposit-taking microfinance institutions. It mandates a minimum 20% liquidity ratio calculated as liquid assets minus thirty-day liabilities divided by total savings deposits, requiring boards to adopt, implement, and biennially review robust liquidity risk management policies. Institutions must submit weekly liquidity statements to the Registrar, who may enforce corrective undertakings or impose administrative penalties on non-compliant entities.
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