Ns National Bank of Rwanda scan Banki Nkuru y’u Rwanda “Ee ete BNR Tiersen The Governor DIRECTIVE N° § ON THE ACTIVITIES AND SPECIFIC LIQUIDITY NORM FOR DEVELOPMENT BANKS Pursuant to Law N® 5/2007 of 3011/2007 governing the Central Bank of Rwanda, especially in its articles 53 and 56; Pursuant to Law N* 007/2008 of 0804/2008 concerning organization of banking expecially in its article. Article one: definition Int irective", unless the context otherwise requires Development bank shall mean: 4 financial institution established witha specific mandate to finance strategie arojects of the country fo ensure it socio economic development. ‘The directive sims at defining the permissible and non permissible activites fer development banks and development finance institutions and establishing specific Liquidity aorms for this category of banks Atticle3; Permissible activites Development banks shall engage in the following activities: Funds mobilization for development financing: Financing development projects and infrastructures; ‘Trade fnance inline with financed development projets and programmes; in, commodity trading, coffee campaigns ad other export Financing production value c promotion commodities; Issue guarantees in line with permissible activites; ion to development projects and programmes; {Investment inequities of companies and othe financial instruments Provide technical assistance in1 Placements of fund as term deposits in licenced banks; i, Trading of forvign exchange with Heensed banks; 4 Undertake such other setivtes as may be preseribed or approved bythe Central Bank fiom time to time. Article 4: Non Permissible aetviies ‘The following shal be the non peemissible activites for development banks: Acceptance of demane, saving and time deposits, or any typeof deposits b. Management of pension fund/schemes. ‘© Acting as intermediary on stock exchange. 44. Granting of etal loans such as personal loans, salary advances, overdraft. ‘© Atno time shall a development bank be involved in financial derivatives excep as edging instrument, Aaticle 5: Liquidity requirements ‘A development bank shall compute and submit tothe Central Bank on monthly bss, a report on Tiguiity status using the reporting format in appendix to this directive. ‘The ratio of liquidity shall be not less than 100 Article 6: Compliance with other laws, regulations and directives: Development banks shall comply with provisions of laws, regulations and directives regulating banks lensed by the National Bank of Rwanda for other matters non stated in thi directive, Especially, Development Banks shall comply with the foreign exchange exposure limits as Jnstucted from timeo time by the Cental Bank Article 7: repealing provision All prior provisions contary to this Directive are hereby repealed. Article: commencement “This Directive shall come into free onthe date of signature, age 0f2Appendix to Directive N° 5 on the activities and specific Hiqudity sorm for development banks. Liquidity ratio reporting format Baa an bld Bake wh NOR Ties bills ot aendng mais Other arable goverment ears Net ae rom as ne Rod Net oe oe aks ote Rad TT guid ses eld Required cash outows or expenses Required cash outows or loan disbursements Required cash outflows or on/debt serving “MReprcae agreement, bowing sd the cei 27 Repurcare peenent the ets 272.Bonowing tom ens ed de secs 361. Deposit eps 36 sued bonds 345.Oter ised dss $4 Subordinated boomingUpto 1 month Credit or guid ates Specie net noms om lie ter hn finial ios on ancl intone sci deposits Snail ston "Total eah inflows ‘Toul ck eutone “Tota cash aos Tota net ash ottons VF Note on colours: