Regulatory Alerts2025-06-10
Liquidity Risk Management Regulation 2023
The Central Bank of Somalia issued this regulation for all licensed banking institutions, mandating a minimum 100% Liquidity Coverage Ratio and a 20% Liquid Assets Ratio alongside comprehensive qualitative risk management frameworks. Financial institutions must maintain board-approved contingency funding plans, implement dedicated management information systems, and submit monthly compliance reports detailing their liquidity positions. The updated framework supersedes the 2015 rules and takes full effect on January 1, 2024.
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