Regulatory Alerts2019-09-06
Instruction No. 003/2019-CSBF on Prudential Ratios and Management Indicators for Microfinance Institutions
The Banking and Financial Supervision Commission (CSBF) of Madagascar has issued Instruction No. 003/2019-CSBF to establish mandatory prudential ratios and management indicators for microfinance institutions (MFIs). The regulation mandates minimum solvency (15%), demand deposit coverage (10%), and medium-to-long-term transformation (100%) ratios, alongside maximum limits for risk concentration (3%), fixed asset coverage (50%), and exposures to related parties (10%). It further requires mutualist MFI networks to maintain a consolidated Financial Solidarity Fund, submit monthly regulatory reports via a tele-declaration system, and calculate standardized performance metrics including risk portfolios, profitability ratios, and operating costs.
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