BoM Revises Guideline on Management of Liquidity Risk by Banks
BoM revised its guideline on the management of liquidity risk by banks in Mauritius. One of the key revisions requires banks to report the liquidity coverage ratio (LCR) on a bimonthly basis, as at the fifteenth and the end of every month. The changes in the guideline shall come into effect on July 01, 2019.
The key revisions to the guideline include the following:
- Section 6 of Appendix 1 of the guideline has been revised to require banks to report their LCR on a bimonthly basis, as at the fifteenth and the end of every month, not later than 10 working days after the fifteenth and the end of every month respectively.
- Section 19 of Appendix 1 of the guideline has been revised to reflect the change in reporting requirements.
- Annex 2 of the guideline has been revised to require banks to present LCR data as simple averages of bimonthly observations over a quarter.
- The template for reporting of LCR has been replaced, as was communicated to banks on January 07, 2019.
The reporting of LCR was first introduced in October 2017 and was initially reported to the BoM on a monthly basis. However, the guideline also stipulates that a bank should have the operational capacity to increase the frequency to weekly or even daily in stressed situations. The revised reporting requirements of LCR leverages the fact that banks now have the requisite system for reporting in place and aims at having a closer monitoring of the liquidity position of banks. The guideline draws on the analysis and recommendations of BCBS contained in reports “Principles for Sound Liquidity Risk Management and Supervision, September 2008” and “Basel III: Liquidity Coverage Ratio and Liquidity Risk Monitoring Tools, January 2013.”
Related Links
Effective Date: July 01, 2019
Keywords: Middle East and Africa, Mauritius, Banking, LCR, Reporting, Liquidity Risk, Basel III, BoM
Featured Experts

María Cañamero
Skilled market researcher; growth strategist; successful go-to-market campaign developer

Nicolas Degruson
Works with financial institutions, regulatory experts, business analysts, product managers, and software engineers to drive regulatory solutions across the globe.

Karen Moss
Senior practitioner in asset and liability management (ALM) and liquidity risk who assists banking clients in advancing their treasury and balance sheet management objectives
Previous Article
ECB Updates List of Supervised Entities in EU in September 2019Related Articles
BIS Report Notes Existing Gaps in Climate Risk Data at Central Banks
A Consultative Group on Risk Management (CGRM) at the Bank for International Settlements (BIS) published a report that examines incorporation of climate risks into the international reserve management framework.
EBA Publishes Multiple Regulatory Updates for Regulated Entities
The European Banking Authority (EBA) published the final guidelines on liquidity requirements exemption for investment firms, updated version of its 5.2 filing rules document for supervisory reporting, and Single Rulebook Question and Answer (Q&A) updates in July 2022.
APRA Consults on Prudential Standard for Operational Risk
The Australian Prudential Regulation Authority (APRA) is seeking comments, until October 21, 2022, on the introduction of CPS 230, which is the new cross-industry prudential standard on operational risk management.
EC Amends Rule on Securitizations; ESRB Updates Reciprocation Measures
The European Commission published a Delegated Regulation 2022/1301 on the information to be provided in accordance with the simple, transparent, and standardized (STS) notification requirements for on-balance-sheet synthetic securitizations.
APRA Announces Revisions to Capital Framework for Banks
The Australian Prudential Regulation Authority (APRA) is announced revisions to the capital framework for authorized deposit-taking institutions to implement the "unquestionably strong" capital ratios and the Basel III reforms.
EBA Examines Remuneration Data and Use of Large Exposure Exemptions
The European Banking Authority (EBA) published a report that examines the use of certain exemptions included in the large exposures regime under the Capital Requirements Regulation (CRR).
UK Authorities Publish Discussion Paper on Critical Third Parties
The Bank of England (BoE), the Prudential Regulation Authority (PRA), and the Financial Conduct Authority (FCA) published a joint discussion paper that sets out potential measures to oversee and strengthen the resilience of services provided by critical third parties to the financial sector in UK.
BoE Issues Update on Ongoing Data Transformation Program
The Bank of England (BoE) issued a communication to firms to provide an update on the progress of the joint data transformation program—which is being led by BoE, the Financial Conduct Authority (FCA), and the industry—for the financial sector in UK.
EBA Issues Draft Methodology and Templates for 2023 Stress Tests
The European Banking Authority (EBA) published the draft methodology, templates, and template guidance for the European Union-wide stress test in 2023.
EBA Issues SREP Guidelines and Standards for Investment Firms
The European Banking Authority (EBA) and the European Securities and Markets Authority (ESMA) jointly published the final guidelines on common procedures and methodologies for the supervisory review and evaluation process (SREP) for investment firms.