Regulatory Alerts2026-07-01
Added · Updated
Instruction No. 002-DPM/26 on the General Framework and Operational Procedures of the Tiered Mandatory Reserve System
Banky Foiben'i Madagasikara (BFM) Instruction No. 002-DPM/26 establishes a new tiered mandatory reserve system, defining the general framework and operational procedures for credit institutions. Under this system, credit institutions are evaluated based on banking liquidity, intermediation, and financing indicators, resulting in a mandatory reserve ratio ranging from 8.00% to 17.00%, with non-compliance leading to escalating penalties. The instruction, effective July 8, 2026, includes a transitional period until August 4, 2026, during which a 15.00% reserve ratio applies, and repeals previous incompatible provisions.
Topics
monetary
Share