2006-05-18

Added · Updated

Notice No. 6/GBM/2007 - Prudential Ratios and Limits

The Bank of Mozambique establishes prudential ratios and limits for all credit institutions under its supervision, repealing Notice No. 5/GGBM/99. The regulation mandates a minimum solvency ratio of 8% and imposes risk concentration limits, capping single-client exposure at 25% of own funds and aggregate large risks at eight times own funds. It further restricts capital participation in other companies to 15% per entity and 60% globally, while limiting global foreign exchange positions to 20% of own funds. The notice also sets fixed asset value caps and requires permanent coverage of liabilities with highly liquid assets.

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