Regulatory Alerts2015-11-06
Directive No. 02/2015 of the National Bank of Rwanda on Emergency Liquidity Facility
The National Bank of Rwanda establishes the terms and eligibility criteria for banks to access its Emergency Liquidity Facility, requiring adequate capitalization, exhausted Standing Liquidity Facility collateral, and transitory liquidity distress. Applications must be submitted in writing by the Managing Director with Board authorization, detailing required amounts, terms, and unencumbered assets, while the Central Bank retains case-by-case discretion to determine maximum amounts, interest rates above the SLF rate, and applicable haircuts. Beneficiary banks face restrictions on dividend distributions, bonus payouts, branch expansions, and insider credit until full repayment, with the facility capped at 120 days per instance and renewable once unless the Governor decides otherwise.