BoM revised the guideline on credit impairment measurement and income recognition for all deposit-taking financial institutions. The guideline outlines the minimum prudential requirements for asset classification, provisioning requirements, and income recognition. The guideline also attempts to provide references, wherever relevant, with the provisions of the accounting standard IFRS 9. The guideline shall come into effect as from January 01, 2020.
This guideline supersedes the guideline on credit impairment measurement and income recognition that was issued in November 2004 and amended in June 2005 and April 2016. Financial institutions are required to provide information to BoM on classification of assets and provisioning in the form and manner prescribed by BoM, no later than 20 working days after the last day of each quarter. Additional burden, if any, due to the prudential requirements in the guideline will be allowed to phase-in for one year from the date of implementation of this guideline, at the discretion of financial institutions.
Effective Date: January 01, 2020
Keywords: Middle East and Africa, Mauritius, Banking, IFRS 9, Reporting, Credit Risk, Expected Credit Loss, Provision for Expected Loss, NPLs, Regulatory Capital, BoM
Previous ArticleBoE and PRA Publish Annual Reports for 2018-19
FSB published the annual report that examines to-date progress toward implementation of climate-related disclosure recommendations of the industry-led Task Force on Climate-related Financial Disclosures (TCFD).
APRA is consulting on the reporting standard for credit risk management (ARS 220.0).
PRA launched a consultation (CP18/20) setting out proposals for the "Contractual Recognition of Bail-in" and "Stay in Resolution" Rules.
FASB is consulting on the XBRL US Data Quality Committee (DQC) Rules Taxonomy (DQCRT) along with two technical guides.
EC published draft of a delegated regulation amending liquidity coverage rules for covered bond issuers.
ESMA published an update to its March 2019 statement on the endorsement of credit ratings from UK.
PRA published Version 2 of the questions and answers (Q&A) on the Branch Return form.
FCA and PRA in the UK, FED in the US, and the authorities in Singapore have fined Goldman Sachs for risk management failures in connection with the 1Malaysia Development Berhad (1MDB).
ISDA launched the IBOR Fallbacks Supplement and the IBOR Fallbacks Protocol, with both becoming effective on January 25, 2021.
BCBS announced that OSFI and the Bank of Canada hosted the 21st International Conference of Banking Supervisors (ICBS) virtually on October 19-22, 2020.