Regulatory Alerts2017-06-09
Added · Updated
Notice No. 14/GBM/2017, of June 9 – Liquidity Ratio for Credit Institutions
The Bank of Mozambique issued Notice No. 14/GBM/2017 to mandate a prudential liquidity ratio for monitoring banking system stability. Credit institutions must continuously maintain a daily liquidity ratio of at least 25%, calculated as liquid assets divided by short-term liabilities, while holding encumbrance-free, low-risk assets that are easily convertible to cash. The regulation requires daily reporting commencing 30 days after publication, quarterly market-access testing through repo or outright sales, and strict eligibility criteria for qualifying assets.
More like this from BM
We email you every new BM publication the day it's published.
Topics
Share