Regulatory Alerts2020-04-16
Instruction No. 001-DOM/20 on Specific Provisions Applicable to Banks Regarding the Mandatory Reserve System
The Central Bank of Madagascar issued Instruction No. 001-DOM/20 to permit banks to deduct the total value of rescheduled non-performing loans from their mandatory reserve requirements for deferrals granted starting March 2020. Banks must submit detailed beneficiary lists and supporting documentation to the Governor by the 5th of the following month, with a specific deadline of 15 April 2020 for March rescheduling. Enacted in response to the national health emergency, the directive grants the Central Bank sole discretion over late submissions and enters into force upon signature.
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