Regulatory Alerts2013-08-29
Liquidity Risk Management for Microfinance Institutions
The Central Bank of the Republic of Kosovo issued this regulation to establish minimum liquidity risk management standards for all domestic and foreign microfinance institutions operating in Kosovo. MFIs must implement a comprehensive management system comprising defined strategies, organizational responsibilities, and information systems that track monthly liquidity positions, cash flow forecasts over at least one year, and funding source diversification. The framework mandates regular board oversight of liquidity exposure limits, maturity gap analysis, and compliance monitoring, with violations subject to statutory remedial measures and civil penalties.
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