The main text governing the area of banking law in Madagascar is Law No. 95-030 of 22 February 1996 relating to the activities and supervision of credit institutions (the « Banking Law« ).
The Banking Law contains the classic elements of a banking law, namely:
(i) the existence of a monopoly of credit institutions regarding the exercise on a habitual basis of banking operations (defined as the receipt of funds from the public, the granting of loans and the provision or management of means of payment),
(ii) the establishment of a Commission for Banking and Financial Supervision (or CSBF), a body responsible for issuing approvals of credit institutions, monitoring compliance of these institutions with their obligations under the Banking Law, and imposing sanctions on those institutions in case of breach of such obligations,
(iii) the particularities of the liquidation of credit institutions (as opposed to the liquidation of regular companies) in the event of a withdrawal of their approvals, or
(iv) criminal penalties for those not complying with the provisions of the Banking Law, for instance in the event of a violation of the banking monopoly.
A specific category of credit institutions, the microfinance institutions, was also created by Law No. 2005-016 of 29 September 2005. The microfinance activity, sometimes more appropriate to a developing country such as Madagascar, is defined as the offering on a habitual basis of proximity financial services to natural or legal persons which do not have access to the traditional banking system. An implementing decree, Decree No 2007-012 of 8 January 2007 has subsequently defined the legal forms that microfinance institutions can take and clarified the procedures to register them with the Trade and Companies Registry.
In addition, the Banking Law was supplemented by an implementing degree, Decree No. 2007-013 of 9 January 2007, which has set minimum share capital and equity nominal value requirements for credit institutions and microfinance institutions.
Finally, the Banking Law provides that the prudential rules applicable to credit institutions shall be defined in instructions issued by the CSBF.
| Download the applicable texts |
CSBF/Central Bank Instructions:
Available on the official website of the Central Bank.