Regulatory Alerts2026-07-01
Added · Updated
Technical Note on the Tiered Mandatory Reserves System
The Central Bank of Madagascar (BFM) issues this technical note to explain the tiered mandatory reserves system designed to optimize banking liquidity management and encourage investment financing. The system calculates a global score for each bank based on four weighted indicators: interest rate spread, transformation intensity, credit allocation, and liquidity surplus mobilization. Banks with higher scores benefit from lower mandatory reserve coefficients ranging from 8% to 17%, incentivizing better performance in monetary policy transmission.
Topics
monetary
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