One of the Central Bank of Somaliland’s mandates is to foster the liquidity, solvency and proper functioning of a market-based financial system. This is achieved through the following:
- Developing appropriate laws, regulations and guidelines that govern the players in the banking and financial sector.
- Continuous review of the banking sector laws, regulations and guidelines to ensure that they remain relevant to the operating environment. These include the Banking Act (No 55/2012), Central Bank of Act (No 54/2012) and Prudential Guidelines and Regulations issued there under.
- Licensing banks, non-bank financial institutions, foreign exchange bureaus, money remittance providers, mobile money services providers, Insurances and microfinance banks.
- Inspection of Islamic banks, microfinance banks, non-bank financial institutions, foreign exchange dealers, money remittance providers to ensure that they comply with all the relevant laws, regulations and guidelines and protect the interests of depositors and other users of the banking sector.
- Analysis of financial reports and other returns from banking sector players to ensure compliance with the relevant laws, regulations and guidelines.
- Contributing towards initiatives that promote financial inclusion.