CENTRAL BANK DEMANDS TRANSPARENCY FROM RWANDA’S BANKS
New Regulations Aim to Ensure Transparency and Accountability in the Banking Sector
The Central Bank of Rwanda has introduced new regulations requiring banks to provide annual financial information, including that of their related parties and affiliates. The Regulation on Consolidated Supervision for Banks aims to ensure transparency and accountability in the banking sector.
Key Requirements
- Banks are required to submit their latest audited financial statements within four months of the end of each financial year.
- Banks must also provide information on any key changes that may occur in their holding companies, subsidiaries, affiliates, or related parties. These changes include:
- Changes in shareholding
- Governance structures
- Significant events that could impact the bank’s operations
Consolidated Supervision
The Central Bank has introduced a new requirement for banks with subsidiaries to submit consolidated financial statements within four months of the end of each financial year.
Quarterly Reports
Banks with subsidiaries or part of a banking group are required to submit reports on their financial returns on both solo and consolidated basis on a quarterly basis. The reports must include information on: + Capital adequacy + Credit concentration + Large exposures + Transactions with related parties + Liquidity requirements
Importance of Consolidated Supervision
The Central Bank has emphasized the importance of consolidated supervision in ensuring the safety and soundness of banks and the stability of the financial system. The regulation is aimed at promoting good governance and risk management practices in the banking sector.
Consequences of Non-Compliance
Failure to comply with the regulations may result in corrective actions and sanctions as provided by law.
Key Dates
- Annual financial statements: April 1st of each year
- Consolidated financial statements: within four months of the end of each financial year
- Quarterly reports on solo and consolidated basis: quarterly
Contact Information
For more information, please contact the Central Bank of Rwanda at [insert contact details].