Regulatory Alerts2025-09-01
Strengthening Somalia’s Financial Sector: The Emerging Role of Non-Bank Financial Institutions
The Central Bank of Somalia has issued this policy brief to outline regulatory reforms and strategic enhancements aimed at strengthening the country’s financial sector through the rapid expansion of non-bank financial institutions. The document details recent legislative and operational milestones, including the Takaful Act 2025, e-KYC integration, and the Somali Instant Payment System, which collectively improve regulatory oversight, digital infrastructure, and financial inclusion for underserved populations. Addressing persistent challenges such as high operational costs, credit risk, and limited financial literacy, the brief recommends implementing risk-based supervision, establishing a national credit bureau, accelerating currency reform, and expanding Sharia-compliant insurance to ensure long-term economic resilience.