Regulatory Alerts2022-01-01
On the Prudential Standards for Microfinance Institutions
The Central Bank of Djibouti issued Instruction No. 2022-14/IMF to mandate that all microfinance institutions maintain strict compliance with six specific prudential ratios at all times. The regulation establishes precise calculation methodologies and minimum thresholds for liquidity (≥80%), risk concentration per person (≤10%), management risk exposure (≤20%), overall risk-bearing capacity (≤200%), medium-to-long-term asset coverage (≥100%), and capital adequacy (≥15%). These standards are designed to ensure institutional solvency, safeguard depositor funds, and enforce robust risk management practices across the microfinance sector effective immediately upon signature.
Share