The National Bank of Rwanda has increased the capital requirement for banks and changed the country's monetary policy framework, Bloomberg News reported Dec. 21.
Lenders will have to increase their paid-up capital to 20 billion Rwandan francs from the current requirement of 5 billion francs, with development lenders required to hold 50 billion francs.
The central bank also changed the capital requirements for the Rwandan insurance industry. General insurers will be required to hold 3 billion francs, life insurers 2 billion francs and reinsurers 5 billion francs, Rwandan newspaper The New Times reported.
The changes come as Rwanda shifts its monetary policy framework to a price-based policy from the current monetary targeting regime.
Due to the changes, the Rwandan central bank postponed its policy meeting by two months, meaning that the benchmark rate will remain at 5.5%.
As of Dec. 21, US$1 was equivalent to 878.45 Rwandan francs.