The Council of Ministers approved the General Regime of the Financial System and Banking Activity

DILI (TOP) - The Council of Ministers meeting held on Wednesday, June 4, 2025, decided and approved the Bill on the General Regime of the Financial System and Banking Activity, presented by the Deputy Prime Minister and Coordinating Minister for Economic Affairs, Dato’ Seri Francisco Kalbuadi Lay, and by the Governor of the Central Bank of Timor-Leste (BCTL), Helder Lopes.

The proposal aims to modernize and strengthen the legal framework that regulates the national financial system, with a special emphasis on banking activity, replacing the regime currently in force. The aim of this new regime is to align national legislation with the most recent international standards and recommendations, in order to ensure greater stability, resilience and transparency in the sector.

The main objectives include updating the rules for licensing and supervising financial institutions, strengthening risk prevention mechanisms, protecting bank customers and strengthening the role of the Central Bank as a regulatory and supervisory body.

The law introduces significant innovations, including the creation of the Resolution Fund and the Deposit Guarantee Fund. The former is intended to provide financial support for resolution measures in institutions in difficulty, while the latter guarantees the reimbursement of bank deposits, in order to promote confidence in the financial system. New rules of conduct and transparency in relations between banks and their customers are also provided for, as well as sanctions for irregular practices.

The new regime covers banks, microfinance institutions, insurance companies, financial companies, cooperatives, fintechs and other entities in the sector. Its implementation is expected to contribute to a safer, more accessible and efficient financial environment, which will support the country's economic growth and development.

The Oekusi Post
Author: The Oekusi PostWebsite: https://www.oekusipost.comEmail: This email address is being protected from spambots. You need JavaScript enabled to view it.
www.OeKusiPost.com nu’udar plataforma media online iha Oe-Kusi Ambeno, Timor-Leste ne’ebé aprezenta notísia iha área oioin iha teritóriu nasionál. Rua. Numbei, Oe-Kusi Ambeno Mobile: +670 7723 4114 Email: info (at) OeKusiPost.com

Online Counter