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Burundi: lending & credit regulation

Regulated

Burundi lending regulated by BRB under 2017 Banking Law; strict prudential & consumer rules

Lead regulator:
Banque de la Republique du Burundi
Key law:
Law No. 1/17 of August 22, 2017 Governing Banking Activities
Last updated:
2026-07-12

Lending and consumer credit activities are strictly regulated by the Banque de la Republique du Burundi (BRB) under the framework of Law No. 1/17 of 2017. The regulator enforces comprehensive prudential standards, including risk classification, provisioning, and exposure limits for licensed credit institutions.

Recent regulatory actions focus on consumer protection and financial stability, such as mandatory insurance for credit-lease contracts and a ban on lending to clients in significant default. The BRB also mandates strict data reporting through a central credit information exchange to monitor borrower debt levels.

Foreign currency lending is permitted only under specific conditions tied to domestic investment generation, ensuring alignment with national foreign exchange regulations. The regulatory environment is characterized by active supervision and detailed circulars governing operational risk and portfolio management.

Who regulates

  • Banque de la Republique du Burundi

    Primary supervisor of credit institutions, setting prudential rules, licensing conditions, and consumer protection standards for lending.

    [1][2][3][4][5][6][7][8]

Core laws & rules

  • Law No. 1/17 Governing Banking Activities (2017)

    The foundational statute governing banking activities, under which the BRB issues binding circulars on credit bans, risk management, and prudential supervision.

    [8]

  • December 28, 2023 Foreign Exchange Regulations (2023)

    Regulates the conditions for granting foreign currency loans and guarantees, requiring them to finance domestic investments generating foreign currency.

    [2]

Licensing & registration

  • Credit Institution License

    Required for entities granting loans; subject to strict prudential rules on risk management, portfolio classification, and capital adequacy implied by risk segmentation.

    [4][6]

Restrictions & warnings

  • Credit institutions are prohibited from granting new financing to clients in payment default of 180 days or more.

    [8]

  • Mandatory insurance obligations and specific termination/purchase option procedures apply to all credit-lease contracts arising after the effective date of Regulation No. 01/2025.

    [1]

  • Strict exposure caps apply, including a 25% limit on individual counterparties and related persons, and a 5% cap on single related entities.

    [4]

  • Foreign currency loans must finance domestic investments that generate foreign currency.

    [2]

Direction of travel

  • The regulator continues to tighten oversight through detailed circulars on risk classification, provisioning, and credit data reporting to enhance financial stability and consumer protection.

    [3][7]

Sources

  1. Regulation No. 01/2025 on Insurance Obligations, Termination Conditions and Exercise of the Purchase Option in Credit-Lease Contracts · 2025-06-01
  2. On the Required Conditions for Granting Foreign Currency Loans and/or Guarantees Issued Under the December 28, 2023 Foreign Exchange Regulations · 2024-10-01
  3. Circular No. 13/M/18 on the Feeding and Consultation of the Information Exchange Centre · 2024-10-01
  4. On the Division of Credit Risks for Credit Institutions · 2024-09-01
  5. Circular No. 13/99 Modifying Circular No. 13/94 on Portfolio Classification · 2024-09-01
  6. Circular No. 23/2018 on Risk Management in Credit Institutions · 2024-09-01
  7. On Risk Classification and Provisioning for Credit Institutions · 2024-09-01
  8. Circular No. 17/2018 on the Credit Ban for Defaulting Clients within the Banking Sector Issued Pursuant to Law No. 1/17 of August 22, 2017 Governing Banking Activities · 2024-09-01

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This guide is compiled automatically from 8 primary-source documents published by Burundi's regulators, reviewed by RegAlert, and refreshed monthly (last updated 2026-07-12). It is not legal advice — always confirm requirements with the regulator or local counsel before acting.