Instruction No. 10 to Banks (All) - Modification No. 40: Mandatory Reserve Coefficient

CENTRAL BANK OF CONGO
THE GOVERNOR
INSTRUCTION NO. 10 TO BANKS (ALL)
Modification No. 40, effective on .
Concerns: Mandatory reserve coefficient.

Article 1:
Banks are required to constitute mandatory reserves in the books of the Central Bank of Congo according to the calculation base and coefficient set out in Article 3.

Article 2:
The mandatory reserve consists of the banks' holdings in national currency in current accounts with the Central Bank of Congo.

Article 3:
The amount of the mandatory reserve is calculated, according to the maturity and currency of the deposit, with respect to the following passive rubrics:

• National currency deposits

• Rubric 33: Ordinary sight deposits from the public: 2%

• Rubric 34: Term deposits from the public: 0%

• Rubric 35: Special regime deposits: 0%

• Foreign currency deposits

• Rubric 33: Ordinary sight deposits from the public: 10%

• Rubric 34: Term deposits from the public: 9%

• Rubric 35: Special regime deposits: 9%

Article 4:
The amount of the mandatory reserve is calculated on a monthly basis. With reference to the monthly situation of banks as of the previous month, the Central Bank of Congo notifies each bank of the amount of the mandatory reserve to be observed during a specified period.

Article 5:
The period for constituting reserves is one month, from the 15th calendar day of each month to the 14th day of the following month.

563, Colonel Tshatshi Boulevard - Kinshasa - Gombe Email: sgouverneur@bcc.cd / svcgouverneur@bcc.cd / cabgouv@bcc.cd - Website: http://www.bcc.cd

CENTRAL BANK OF CONGO
CONTINUED ON PAGE
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Article 6:
Compliance with the mandatory reserve coverage is verified at the end of each constitution period, with reference to the average of the daily balances of the assets held by banks in current accounts in the books of the Central Bank of Congo during the constitution period.

Article 7:
An insufficiency of mandatory reserve constitutes the case where the average of the current account balances of a bank over the entire constitution period is lower than the amount notified to it for the corresponding constitution period.

Article 8:

• A penalty equal to the interest rate on "permanent facilities" increased by half is applied to the amount of the insufficiency at the end of each period;
• An automatic debit notice generated in compensation to the bank concerned for the compulsory deduction of the penalty.

25 FEB. 2016 Made in Kinshasa, on .

Deogratias
TOMBO MVA NYEMBO
Governor

563, Colonel Tshatshi Boulevard • Kinshasa - Gombe Email: sgouverneur@bcc.cd / svcgouverneur@bcc.cd / cabgouv@bcc.cd • Website: http://www.bcc.cd