Regulatory Alerts2015-08-25
Regulation on Limits on Inter-Bank Exposures
The Monetary Authority of the Maldives issued Prudential Regulation 165R2015/2015 to limit systemic risk and contagion within the Maldivian banking sector by capping inter-bank exposures. The regulation mandates that unsecured exposures exceeding seven days must not exceed 30% of the counterparty's base capital, while shorter-term exposures are capped at 15%, with specific rules for renewals and eligible securities. Banks failing to comply with these limits or reporting requirements face corrective measures and sanctions, including warnings, restrictions on activities, and license suspension or revocation.
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