Regulatory Alerts2026-04-01
Added · Updated
Instruction No. 2011-05 on the Composition of Own Funds of Credit Institutions
This instruction defines the composition of own funds for credit institutions in Djibouti, specifying that basic own funds consist of paid-up capital, reserves, and retained earnings, while complementary own funds include stable reserves and specific subordinated debt instruments subject to strict conditions. It establishes a cap limiting complementary own funds to 100% of basic own funds, with subordinated instruments capped at 50%, and mandates the deduction of participations exceeding 10% in other financial entities. The Central Bank of Djibouti retains the authority to require deductions for loans to directors and shareholders, approve temporary derogations from caps, and correct declaration states, with compliance reports due quarterly.
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