National Bank of Rwanda - Directive No. 03/2015 - On Capital Requirements

The National Bank of Rwanda's Directive No. 3/2015 provides guidance regarding minimum capital and adequate capital and disclosure requirements to be followed by all scheduled banks operating in the country. The directive seeks to provide protection to the depositors of banks and other institutions to which the directive applies by requiring these financial institutions to maintain a level of capital that is commensurate with the risk associated with thier activities and business profiles and which promotes public confidence in them and the overall banking system. The directive is divided into several chapters, and sets forth provisions on the following topics:

1. Definition of Capital
2. Minimum Capital Requirements
3. Additional Capital Buffer Requirements
4. Capital Charge for Risk Weighted Assets (RWAs)
5. Capital Requirement for Credit Risk
6. Credit Risk Mitigation
7. Calculating the Effect of Credit Risk Mitigation on RWAs
8. Capital Requirements for Market Risk
9. Capital Requirements for Operational Risk
10. Leverage Ratio
11. Internal Capital Adequacy Assessment Process (ICAAP)
12. Mandatory and Discretionary Corrective Measures
13. Disclosure Requirement
14. Remedial Measures and Administrative Sanctions


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Wednesday, November 11, 2015
Document Authors: 
National Bank of Rwanda
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