Regulatory Alerts2012-04-14
Added · Updated
Instruction No. 002 on Prudential Standards for Savings and Credit Cooperatives and Microfinance Institutions
This instruction establishes prudential standards for Savings and Credit Cooperatives and Microfinance Institutions, requiring a minimum capital, a minimum solvency ratio of 10%, and a minimum immediate liquidity ratio of 20%. It defines the composition of prudential own funds, limits risk concentrations to specific percentages of own funds or member deposits, and mandates that long-term employment be covered by stable resources. The regulation also restricts related-party lending, limits non-core operations to 20% of previous year's income, and imposes strict limits on foreign exchange positions.