Regulatory Alerts2020-03-21
Circular to Banks: Mandatory Reserves
The Bank of Haiti issued Circular BRH/DCC/CIRC#01-20 on March 19, 2020, effective March 20, 2020, to modify mandatory reserve coefficients and foreign currency reserve formation rates. The circular increases reserve coefficients for commercial banks and non-bank subsidiaries to 40% for gourde liabilities and 51% for foreign currency liabilities, while setting rates for savings and housing banks at 28.5% and 39.50% respectively. Additionally, it establishes the reserve formation rates for foreign currency liabilities at 12.5% in gourdes and 87.5% in foreign currencies.
Ref.: BRH/DCC/CIRC#01-20 To Commercial Banks And to Savings and Housing Banks Effective March 20, 2020, the mandatory reserve coefficients on liabilities denominated in gourdes and foreign currencies, as well as the reserve formation rates on liabilities denominated in foreign currencies, will be modified as follows:
- Mandatory Reserve Coefficients
| Liabilities in Gourdes | Liabilities in Foreign Currencies |
|---|---|
| Commercial Banks | 40% |
| Savings and Housing Banks | 28.5% |
| Non-bank Subsidiaries | 40% |
- Reserve Formation Rates on Foreign Currency Liabilities
| In Gourdes | In Foreign Currencies |
|---|---|
| 12.5% | 87.5% |
Port-au-Prince, March 19, 2020 Jean Baden Dubois