Banco de Moçambique to limit concentration of Mozambican bank deposits abroad

10 January 2013

The Banco de Moçambique is preparing a regulation that will introduce limits on the concentration of Mozambican banks’ deposits abroad, the newspaper Correio da Manhã reports, citing the Maputo office of the International Monetary Fund (IMF).

The measure is among enhanced measures developed by the central bank to supervise financial institutions active in the country, oversight which is strengthened by the signing of agreements with supervisors of foreign banks operating in Mozambique, the article in the daily indicates.

The international financial institution emphasises that Banco de Moçambique plans to regularly use a “tool involving stress tests based on detailed information about financial placements and bank financing, including abroad”.

In a December 2012 statement signed by IMF resident representative Victor Lledó the institution stressed that the commitment to strengthen supervision and the crisis management framework would help protect the financial sector from cross-border impacts such as “Mozambican banks’ financial links with foreign financial institutions”. (macauhub)