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Department of Other Financial Institutions Supervision

This Department is charged with the responsibility to register, license and regulate non-banking financial institutions. The principal law – Central Bank of Lesotho Act provides the basic mandate and the execution of its various functions is undertaken through the industry specific acts and regulations. It comprises of the following three Divisions:- Pensions and Securities supervision Division, Insurance Supervision Division, and Non- Banks Supervision Division.

Pensions and Securities Supervision Division (PSSD MANDATE)

The Division is responsible for maintenance of financial system stability through regulation and supervision of the Pension Funds and Securities industries in Lesotho. The Division’s mandate is derived from three pieces of legislation, the Central Bank of Lesotho (Collective Investments Schemes) Regulations 2018, the Pension Funds Act 2019 and the Central Bank (Capital Markets) Regulations 2014.

 The Division is responsible for the following:

  • Fostering the liquidity, solvency and proper functioning of a stable market-based financial system;
  • Protection and providing information to the investing public
  • To promote the safe and sound development of the financial system.

 Functions:

  • formulation and execution of relevant laws regulating the financial institutions.
  • Development of the Financial Sector through building requisite financial infrastructure and participating in other national initiatives;
  • undertaking On-site and Off-Site Inspections and publishing relevant supervisory reports on the financial health of the Pension Funds and Securities industry in Lesotho.
  • Licensing and registering regulated institutions in the Pension Funds and Securities industry and their intermediaries;
  • Undertaking financial consumer protection through handling of Consumer Complaints.

 Insurance Supervision Division Mandate

The Insurance Supervision Division is generally responsible for maintenance of financial system stability through the supervision and regulation of insurance sector in Lesotho. Its mandate is derived from the CBL functions as the Commissioner of Insurance and as contained in the Insurance Act of 2014 and include but not limited to:

  • Registration of insurers and insurance intermediaries
  • Formulation and enforcement of appropriate directives and codes of conduct of insurance business;
  • Promoting healthy competition and sound business cooperation within the local insurance market;
  • Offering protection, enlightenment and guidance to policyholders and public in matters of insurance policies and their application or implications; and
  • To promote the safe and sound development of the financial system.

 The functions of the Division include the following:

  • To formulate, adopt and execute relevant insurance policies and supervisory frameworks;
  • To license insurance companies and their intermediaries;
  • To develop the insurance sector through building requisite financial infrastructure and participating in other national initiatives with the same aim, e.g. Financial Inclusion;
  • To undertake on-site and off-site inspections on the regulated institutions within the insurance sector;

 Non-Banks Supervision Division (NBSD)

Mandate

The Division is generally responsible for maintenance of financial system stability through the supervision and regulation of Nonbanks Financial Institutions (NBFIs) in Lesotho.

 The Division’s mandate is derived from the following CBL functions as contained in the CBL Act of 2000:

  • To foster the liquidity, solvency and proper functioning of a stable market-based financial system;
  • To license, register and supervise institutions pursuant to the Financial Institutions Act of 2012, the Money Lenders Order of 1989, and the Building Finance Institutions Act of 1976, and the Insurance Act of 1976; and
  • To promote the safe and sound development of the financial system.

 NBSD Key Functions:

  • formulation, adoption and execution of relevant NBFIs policies and supervisory frameworks;
  • formulation and execution of relevant laws regulating the financial institutions.
  • Development of the Financial Sector through building requisite financial infrastructure and participating in other national initiatives with the same aim, e.g. Financial Inclusion.
  • undertaking On-site and Off-Site Inspections and publishing relevant supervisory reports on the financial health of NBFIs in Lesotho.
  • Collection and compilation of NBFIs statistics.
  • Licensing and registering NBFIs.
  • Undertaking financial consumer protection through handling of Consumer Complaints.

Functions of the Department and Divisions

The Department of Facilities Management and Protective Services (DFMPS) is mandated to support the functionality, safety, and sustainability of the Bank’s portfolio on infrastructural assets namely Property, Plant & Equipment (PPE). It is further entrusted with the responsibility to provide a secure and safe working environment for all the Bank employees, clients, and customers.

The Department is organised into two Divisions and their Sections/Units as follows:

1. Facilities Management Services Division

The mandate of the Facilities Management Services Division (FMSD) is to ensure that all movable and immovable assets of the Bank are maintained and operate at all times at optimal level. It is entrusted with the responsibility to provide conducive working environment within the Bank premises; oversee and manage all construction projects and maintenance of the assets and infrastructure of the Bank; provide support in areas of logistics/transport, hygiene, and gardening services.

1.1 Maintenance Services

The Maintenance Unit is charged with the primary responsibility of functional checks, servicing, repairing, and/or replacing worn out devices, equipment, machinery, building infrastructure where necessary, and designing improvements well as implementing such improvements to keep up with times and technology.

1.2 Transport & travel

The Transport Services Unit is charged with the responsibility of safeguarding the Bank’s fleet, providing transport to all staff members and designated visitors to the Bank. The Unit is further mandated to ensure that all vehicles are periodically serviced and always roadworthy.

1.3 Hygiene control & gardening

The Hygiene & Gardening Services Unit is charged with the responsibility of providing a conducive working environment for all staff and visitors to the Bank by always keeping the premises clean. They also provide refreshments for staff and visitors.

 

2. Protective Services Division

The mandate of the Protective Services Division (PSD) is to provide a secure and safe working environment for all the Bank employees, clients and customers. It protects the assets and infrastructure of the Bank while at the same time supporting the daily operations of the Bank. The Division is further divided into three sections as follows:

2.1 Security Systems Management

Security Systems Management is responsible to ensure efficient functioning and maintenance of electronic security system as well as overseeing the operations of control room. The section is further mandated to undertake division’s administrative tasks that include leave plan implementation and training of staff.

2.2 Operations

The Operations Section is mandated to ensure day-to-day protection and safety of staff and assets of the Bank. The Section is responsible to security control within the Bank premises through access control, manning of security posts, escorting visitors and contractors within the Bank building and premises. The Section is also entrusted with the responsibility of evacuation of staff and visitors during emergencies.

2.3 Security Risk Management

The Security Risk Management Section is responsible for management of the Bank’s security risks and gathering of intelligence that is relevant to the financial sector. The Section is further responsible for vetting of prospective Bank employees and suppliers; liaising with law enforcement agencies and financial institutions on matters of mutual interest; and administering the Bank’s At Risk Personnel Protection Program.

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Financial Indicators

22 April 2024

Loti / US Dollar       18.4867
Loti / Euro 20.0621
Loti / Pound 23.4411
Loti / SDR 24.5387

 

Detailed indicators

Monthly Inflation (%) 2023 to 2024

Net International Reserves

RESEARCH & SUPERVISION DATA

17.2773
17.1507