Regulatory Alerts2000-03-21
COBAC Regulation R-93/06 on the Liquidity of Credit Institutions
The Central African Banking Commission issued Regulation R-93/06 to mandate that credit institutions maintain a minimum 100% liquidity ratio, calculated by defining specific numerator components such as cash balances, central bank drawing facilities, and refinancing agreements, alongside denominator elements including term deposits, current accounts, and off-balance-sheet commitments. The regulation establishes precise calculation methodologies, reporting timelines to the General Secretariat, and enforcement powers allowing the Commission to issue injunctions or impose disciplinary sanctions for non-compliance. It grants temporary derogation powers and entered into force on 1 July 1993 to ensure ongoing financial stability across member credit institutions.