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Madagascar Banking Industry Regulatory Updates: What to Expect in 2024
As the banking industry in Madagascar continues to evolve, regulatory bodies are gearing up for a series of changes that will impact financial institutions across the sector. From increased scrutiny to new capital requirements, here’s what you need to know about the regulatory landscape in 2024.
Increased Regulatory Scrutiny
Federal regulators have signaled that supervisory scrutiny of financial institutions is expected to increase materially in 2024, with particular attention on untimely remediation of supervisory findings. This means that midsize regional banks and nonbanks alike will need to prepare for new regulation and increased governance and risk management expectations.
Safety and Soundness at the Forefront
Several significant proposals designed to improve the safety and soundness of the banking sector are expected to be finalized in 2024, including the finalization of Basel III international standards and new long-term debt requirements for large banking organizations. These changes will have a major impact on the industry, with many smaller banks expected to come under regulatory standards traditionally reserved for the largest institutions.
Intersection of Innovation and Consumer Protection
Regulators are expected to emphasize consumer protection in 2024, scrutinizing the potential adverse effects that innovative products, services, and technologies deployed by banks may have on consumers. Aspects such as:
- Third-party risk management programs
- Fintech partnerships
- Emerging technologies like AI and DLT
will come under increased regulatory scrutiny.
Get Ahead of Regulatory Change
Proactive measures are crucial to understanding the impact of banking regulatory changes in 2024. Banking leaders should analyze the impact of emerging trends and proposed regulations on:
- Legal entity, business, and operational structures
- Anticipate the regulatory impact on their current or future operating model
For more information on the banking industry in Madagascar, check out our recently released 2024 Banking and Capital Markets Industry Outlook.