By Zamzam Daqare - Reporter
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MOGADISHU, 25 October 2026 — The Somali Banks Association (SBA) and representatives of its member banks met with the Central Bank of Somalia on Saturday to review regulations affecting banking operations and propose amendments to the country's regulatory framework.
According to the association, the latest meeting focused specifically on the Asset Classification and Provisioning Regulation, which governs how banks classify their assets, particularly loans, and set aside provisions for potential losses from unpaid debts.
The regulation is intended to ensure that banks properly assess the quality of their loan portfolios and maintain adequate provisions against potential credit losses.
The SBA said its officials and representatives of member banks presented observations, recommendations and proposed amendments aimed at ensuring the regulation reflects the operational and regulatory needs of Somalia's banking sector.
The association said it would continue working with the Central Bank to complete reviews of other outstanding regulations and support improvements to the country's banking system.
The SBA did not disclose the specific amendments it proposed or indicate whether the Central Bank had accepted its recommendations.