Regulation on Foreign Currency Exposure Limits

ރައީސުލްޖުމްހޫރިއްޔާގެ އޮފީސް
ބޮޑުތަކުރުފާނުމަގު
މާލ،ެ ދިވެހިރާއްޖ.ެ
ފޯނ:ު 3323701 ، 3336137
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REGULATION PRUDENTIAL
LIMITS EXPOSURE CURRENCY FOREIGN ON REGULATION Paragraphs of Arrangement I PART Preliminary PARAGRAPH ......................................................................................................................................4Introduction 1. ..................................................................................................................................................4Title 2. .......................................................................................................................................4Application 3. ......................................................................................................................................4Commencement 4. ........................................................................................................................................4Definitions 5. II PART Policy of Statement PARAGRAPH .............................................................................................................................................5Purpose 1. ....................................................................................................................................5Responsibility 2. III PART Requirements Prudential and Implementation PARAGRAPH .................................................................................5Exposure Currency Foreign Overall on Limit 1. ................................................................................................5Exposure Currency Single on Limit 2. .................................................................................5DayForeignCurrencyExposure-LimitonIntra 3. ....................................................................................................................................6GlobalLimits 4. .....................................................................................................................................6 Exemptions 5. ....................................................................................6Exposures Currency Foreign of Calculation 6. .............................................................................6CorrectionofExcessForeignCurrencyExposures 7. .....................................................................................6Documentation Supporting of Maintenance 8. ...................................................................................................................6Requirements Reporting 9. IV PART Measures Corrective PARAGRAPH ..................................................................................................6 Sanctions and Measures Remedial 1.

PRELIMINARY :I PART
Maldives (24/2010 .No Law of 66 Section to pursuant issued is Regulation This – Introduction 1:
.(Act Banking
".Limits Exposure Currency Foreign on Regulation "as cited be shall Regulation This - Title 2:
Law (Act Banking Maldives the under licensed Banks all to applies Regulation This – Application 3:
.(24/2010 .no
2015. August 25 on effect into come shall Regulation This – Commencement 4:
expressly where except ,shall Regulation this in used expressions and terms The – Definitions 5:
respective same the have ,requires otherwise context the where or Regulation this in below defined :(24/2010 .no Law (Act Banking Maldives the in as meaning .(24/2010 .no Law (Act Banking Maldives the means" – Act) "1 ( banking the in engage to ,Act the under permit or license a holding party a means” – bank) “2 ( .Act the of 25 Section in listed activities banking the of part or all; business the by issued Regulation Adequacy Capital the in defined Base Capital means" – base capital) "3 ( .MMA by currency ,sum equivalent currency domestic the means -” exposure currency foreign) “4 ( balance-off or on whether ,liabilities or assets denominated currency foreign net all of ,currency .exclusion for MMA the by ,writing in ,given been has permission prior unless ,sheet either in ,exposure risk exchange foreign the means -” exposure currency foreign day-intra) “5 ( and opening the between incurs bank a which ,currencies all of sum the as or currency single a .day same the on business of close 6/81 .no Law the under established Authority Monetary Maldives the means" – MMA) "6 ( .(Act Authority Monetary Maldives( domestic a as expressed ,currencies foreign in denominated liabilities or assets sheet balance￾off and sheet balance-on net all of sum the means -” exposure currency foreign overall) “7 ( .measurement for method shorthand the using and rate-mid spot the at amount equivalent currency

position short or) assets (position long a of larger the means -” exposure currency single) “8 ( expressed and currency foreign single a in denominated ,sheet balance-off and on both ,)liabilities( .rate-mid spot the at amount equivalent currency domestic a as :by exposure currency foreign the measuring for procedure the means -” method shorthand) “9 ( (2) ;side other the on positions long all and side one on positions short all separately adding) 1( .exposure overall the as totals two the of larger the taking) 3 (and; totals two the comparing ,equivalent currency domestic the of factor a as expressed ,rate that means -” rate-mid spot) “10 ( .equivalent currency domestic to converted is currency foreign a which at POLICY OF STATEMENT :II PART from resulting loss of risk the that ensure) 1 :to is regulation this of purpose The - Purpose 1. promote) 2; base capital s'bank a to relative limits prudential within is exposures currency foreign (3 and; rates competitive at exchange foreign of market domestic the within availability maximum .prudently yet profitably business conduct to banks allow a establish to bank each of directors of board the of responsibility the be shall It - Responsibility 2. compliance in and prudently exposures currency foreign its managing and monitoring for system .Regulation this in forth set limits the with REQUIREMENTS SPECIFIC AND IMPLEMENTATION :III PART and short (exposure currency foreign overall The - exposure currency foreign overall on Limit 1. ,combined sheet balance-off and sheet balance-on and currencies all for) positions currency long .base capital s’bank a of 40% exceed not shall method shorthand the and rates-mid spot using ,currency single any in exposure risk exchange foreign the - exposure currency single on Limit 2. base capital s’bank a of 15% and ,position long a for base capital s’bank a of 25% exceed not shall .position short a for ,exposures risk exchange foreign day-intra - exposure currency foreign day-intra on Limit 3. limits prudent within maintained and monitored be shall ,overall and currencies single in both risk exchange foreign covering policy written a in directors of board s'bank a by established as .exposure

above indicated limits exposure currency foreign overall and currency single The - limits Global 4. branches different its for limits internal different have may bank a .,e.i ,basis” global “a on apply bank the to basis global a on apply regulation this in forth set limits the ,however; subsidiaries and .basis entity consolidated a as of either exceed will it that anticipates bank a ,business of course normal the in ,If - Exemptions 5. beyond circumstances to due exceeded is limit either if or ,limit overall the or currency single the the to ,writing in ,apply may bank the then ,control and anticipate to ability reasonable s’bank the how indicating and position excess the for s/reason the stating exemption temporary a for MMA .corrected be will position excess the when and currency single its calculate shall bank Each - exposures currency foreign of Calculation 6. by prescribed methodology the using day each exposure currency foreign overall its and exposure .MMA the action reasonable every take shall bank Each - exposures currency foreign excess of Correction 7. forth set limits the exceed which exposures currency foreign all and any correct immediately to complying-non any correct to Failure .policy adopted-board its in and standard prudential this in of close the by ,above 5 paragraph under exempted been has which one than other ,exposure risk set as license s’bank a on conditions of imposition the in result may day following the on business .below forth are which records maintain shall bank Each - documentation supporting of Maintenance 8. .exposures risk exchange foreign overall and currency single its times all at determine to sufficient risk exchange foreign business-of-close showing record daily a maintain also shall bank Each .positions closing-to-opening of reconciliation a and) overall and currencies single both (exposures foreign its of respect in returns MMA the to submit shall bank Each .Requirements Reporting 9. .prescribe may MMA the as frequency and form the in exposures currency MEASURES CORRECTIVE :IV PART associated person other any or ,administrators its ,bank a If – sanctions and measures Remedial 1:
and instructions the with comply to fails or ,regulation this of provision any violates bank the with corrective the of more or one any take may MMA the ,regulation this in requirements reporting and measures Such .Act the in provided as penalties administrative any impose or measures – following the of all or any ,include may penalties

;bank the to warning a Issue) a ( and unsafe any and violations correcting for bank the with agreement informal an into Enter) b ( ;conditions and practices unsound to further and actions particular from desist and cease to it requiring bank the to order an Issue) c ( ;conditions and practices unsound & unsafe any and violations correct to actions affirmative take ;funds capital additional inject to directors of board the Require) d ( foreign any on limitations imposing including bank the of activities of scope the Restrict) e ( borrowing ,deposits of acceptance ,investments of making ,credit of granting ,activities exchange ;appropriate deem may MMA the as activities other or ,money of ;MMA the of facilities credit the to access Suspend) f ( ;officers executive or directors any of removal or suspension the Require) g ( ;conservator a or advisor an Appoint) h ( or officers executive ,directors its of any or bank the on penalty administrative an Impose) i ( or; managers executive ,directors any ,allows law the as ,from restitution seek and liable personally Hold) j ( or; bank the of shareholders major or officers .license s'bank the revoke or Suspend) k ( ,Stability Financial of Head the to addressed be should regulation this to relating Questions .Authority Monetary Maldives

ގެޒެޓުގެ އިޢުލާންތަކާއި ދެންނެވުންތަކާއި އެންގެވުންތައް ހިލޭ ދުރަށް ފޮނުއްވާ ގަޑިތައް .1 .2 އާދީއްތައިން ބުރާސްފަތި ދުވަހުގެ ނިޔަލަށް - ކޮންމެ ދުވަހަކު މެންދުރު 12:30 ން 1:00 އަށް ، ހަވީރު 3:30 ން 4:00 އަށް ހުކުރު ދުވަސް - ހެނދުނު 11:00 ން 11:30 އަށް ، ހަވީރު 3:30 ން 4:00 އަށް ހޮނިހިރު ދުވަސް - ހަވީރު 3:30 ން 4:00 އަށް ހަފުތާގެ ކޮންމެ ރެއަކު 7:00 ން 7:45 އަށް .air on friend your...