August 18, 2017

The Bank of Mauritius, or BoM, issued revised guideline on credit risk management, which supplements the existing regulations and guidelines. Where this guideline imposes more stringent requirements than those in the existing regulations and guidelines, such requirements shall apply. The guideline supplements guidance provided in the International Accounting Standard (IAS) 39 of the IASB.

The guideline specifies that the role of the board of directors and, through it, the chief executive officer, is to manage the credit activity of a financial institution with integrity. They shall remain accountable and liable for actions taken, or not taken, during the time they were in office, when such actions were called for using normal prudence. The guideline aims to: promote:

Sound credit risk and valuation policies and practices dealing with loans and similar other financial instruments

Sound risk management processes appropriate for the nature of business of the financial institution

Adoption of an active, anticipatory approach to assessing risk and losses in the loan portfolio

Adequate disclosure of provisions for credit losses, both collective and specific

 

The guideline will become a focal point of reference for all requirements of the BoM for credit risk policy formulation and management. It applies to all deposit-taking financial institutions regulated by the BoM. A financial institution may want to establish a more comprehensive and sophisticated framework than that outlined in the guideline. This is acceptable, provided all essential elements of the guideline are fully taken into account.

 

Related Link: Guideline on Credit Risk Management (PDF)

Effective Date: August 18, 2017

Keywords: Middle East and Africa, Mauritius, Banking, Credit Risk Management, Guidelines, BoM

Related Articles
News

US Agencies Consult on Capital Treatment of Land Development Loans

US Agencies (FDIC, FED, and OCC) issued a proposed rule on the treatment of loans that finance the development of land for purposes of the one- to four-family residential properties exclusion in the definition of high volatility commercial real estate (HVCRE) exposure in the regulatory capital rule.

July 12, 2019 WebPage Regulatory News
News

EBA Single Rulebook Q&A: Second Update for July 2019

Under the Single Rulebook question and answer (Q&A) updates for this week, EBA published answers to five questions related to supervisory reporting.

July 12, 2019 WebPage Regulatory News
News

ESMA Updates Manual for European Single Electronic Format in EU

ESMA updated the reporting manual for European Single Electronic Format (ESEF).

July 12, 2019 WebPage Regulatory News
News

FED Updates Supplemental Instructions for Reporting Form FR Y-9C

FED updated the supplemental instructions for FR Y-9C reporting.

July 12, 2019 WebPage Regulatory News
News

EBA Publishes Report on Monitoring Implementation of LCR in EU

EBA published its first report on the monitoring of the implementation of liquidity coverage ratio (LCR) in EU.

July 12, 2019 WebPage Regulatory News
News

EIOPA Consults on Reporting and Disclosures Under Solvency II Review

EIOPA launched a consultation package on supervisory reporting and public disclosure in the context of its work linked with the 2020 Solvency II review.

July 12, 2019 WebPage Regulatory News
News

APRA Applies Additional Capital Requirements to Three Australian Banks

APRA is applying additional capital requirements to three major banks in Australia to reflect higher operational risk identified in their risk governance self-assessments.

July 11, 2019 WebPage Regulatory News
News

IMF Report on 2019 Article IV Consultation on Euro Area Policies

IMF published its staff report in context of the 2019 Article IV consultation on euro area policies with member countries.

July 11, 2019 WebPage Regulatory News
News

FSB to Survey Practices on Cyber Incident Response and Recovery

FSB launched a survey on the industry practices on cyber incident response and recovery.

July 11, 2019 WebPage Regulatory News
News

ECB Appoints New Members of Supervisory Board

The Governing Council of ECB appointed Edouard Fernandez-Bollo, Kerstin af Jochnick, and Elizabeth McCaul as representatives to the Supervisory Board of ECB Banking Supervision, for a five-year non-renewable term.

July 11, 2019 WebPage Regulatory News
RESULTS 1 - 10 OF 3441