2006-05-18
Added · Updated
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.