Circular 97 to commercial banks and savings and housing banks: ratio of foreign-currency loans to foreign-currency liabilities
Summary: BRH circular of 18 September 2000, under Article 43(a) of the decree of 14 November 1980 on banking. Banks must keep foreign-currency loans, net of allowed deductions such as cash collateral and OECD guarantees, at no more than 50 percent of foreign-currency liabilities, and report monthly. Breaches cost 1/10 of 1 percent of the excess per day. In force 1 January 2001.
Key Findings
- Foreign-currency loans net of allowed deductions may not exceed 50 percent of foreign-currency liabilities at any time.
- Allowed deductions include fungible cash collateral, guarantees from OECD-based banks and international institutions, BRH foreign-currency securities, OECD sovereign securities and Fonds de Développement Industriel guarantees.
- Banks may not use transactions with related companies to bring the ratio under the limit.
- A breach costs 1/10 of 1 percent of the excess per day; withholding working files from inspectors costs 5,000 gourdes a day.
- Monthly compliance report due 15 days after month end; in force 1 January 2001.
How to cite
Bank of the Republic of Haiti (BRH), 2000, Circular 97 to commercial banks and savings and housing banks: ratio of foreign-currency loans to foreign-currency liabilities, https://brh.ht/wp-content/uploads/2018/08/rapportpretspassifs-1.pdf
- Rights holder
- Banque de la République d'Haïti (BRH)