Regulation Concerning Interest Rate Determination

REGULATION NO CBL/SD/01/2004
REGULATION CONCERNING INTEREST RATE DETERMINATION Pursuant to the authority vested in it by Section 39 of the New Financial Institutions Acts of 1999, and consistent with Section 35 of the Central Bank of Liberia Act of 1999, the Central Bank of Liberia hereby prescribes, makes, regulates and sets forth as follows:
1.0 REVOCATION OF REGULATION NO CBL/SD/02/2002
1.1 Regulation No CBL/SD/02/2002 issued on April 15, 2002 as earned in Liberia
Official Gazette Volume III, No. 2 is hereby revoked.
1.2 Every banking institution operating in Liberia shall, as of the date herein below
written, be required to adhere to the determination of interest rate and' other charges influenced by market forces. The interest rate and all charges, inclusive of commissions, fees, and discounts for lending of money shall be market determined, provided, however, that for and during the two-year period immediately following the effective date of this regulation. no banking institution shall take, receive or charge an effective rate of interest greater than 25% per annum, inclusive of all commissions, fees, discounts and other charges, but exclusive of penal charge(s) and collection fees for default.
1.3 There shall be no minimum or maximum interest rate on any category of deposit
accounts. This provision shall not be construed as authorizing the levying of monthly charges on savings account.
2.0 DISPLAY OF SCHEDULE OF CHARGES
Every Financial Institution operating in Liberia shall conspicuously display in its banking hall and similar places accessible to the public, the schedule of all its existing fees, commissions and other charges as at the' date of such fees, commissions and other charges.
3.0 PENALTY FOR FAILURE TO DISPLAY
Any banking institution that fails, neglects, refuses, or omits to display the schedule of its charges as herein above required shall be in violation of provision of this regulation and shall be subject to a fine of L$10,000.00 (Ten Thousand Liberian Dollars) for each day of the violation.
4.0 EFFECTIVE DATE
This regulation shall come into full force and effect upon been published in the official gazette and shall remaining full force and, effect until otherwise changed by operation of law or the Central Bank of Liberia.

Issued this _______________day of July, A.D. 2004 in the City of Monrovia, Republic of Liberia. BY ORDER OF THE PRESIDENT MINISTER OF FOREIGN AFFAIRS MINISTRY OF FOREIGN AFFAIRS MONROVIA, LIBERIA JULY 2004