Featured Product

    BOM Publishes Several Regulatory Updates in June 2021

    June 28, 2021

    The Bank of Mauritius (BOM) published guidelines on the issuance of sustainable bonds, on the scope of application of Basel III and eligible capital, for the computation of debt-to-income ratio for residential property loans. Also, BOM conducted an assessment of the domestic systemically important banks (D-SIBs) in June 2021, designating five banks as systemically important: The Mauritius Commercial Bank Ltd, SBM Bank (Mauritius) Ltd, Barclays Bank Mauritius Limited (now known as Absa Bank Mauritius Limited), The Hongkong and Shanghai Banking Corporation Limited, and AfrAsia Bank Limited. The same banks had been identified as D-SIBs in the previous assessment that was conducted in January 2020. In another update, BOM has extended certain relief measures taken in the context of the COVID-19 pandemic.

     To continue to provide ongoing assistance to Mauritian businesses across all economic sectors, households, and individuals, BOM has extended, till June 30, 2022, the:

    • moratorium on loans granted to economic operators, small and medium enterprises, households, and individuals impacted by COVID-19. 
    • Special Relief Amount facility of MUR 5.0 billion made available to banks to help meet cash flow and working capital requirements of economic operators directly impacted by COVID-19. Disbursement will continue to be effected through commercial banks and interest rate on these advances to impacted economic operators remains capped at the fixed rate of 1.5% per annum.
    • reduction of the Cash Reserve Ratio applicable to commercial banks from 9% to 8%  to further support banks to assist businesses that are being impacted by COVID-19.

    The following are the key highlights of the recently published guidelines:

    • The guideline on scope of application of Basel III and eligible capital sets out the rules text and timelines to implement some of the elements related to the strengthening of the capital framework. It also lays down the transitional arrangements for implementing certain elements of the Basel III capital framework as well as the limits and minima of the different components of capital. The revised guideline shall come into effect on June 28, 2021.
    • The guideline on the computation of debt-to-income ratio for residential property loans sets out procedures to be followed by banks to determine repayment capacity of borrowers when granting credit facilities for the purchase or construction of residential properties in Mauritius. The revised guideline shall come into effect on June 17, 2021.
    • The guideline on issuance of sustainable bonds in Mauritius covers the requirements and process for the issuance of sustainable bonds and for the listing of these bonds on Exchanges licensed in Mauritius while seeking to ensure the integrity of the sustainable financing ecosystem in Mauritius and to prevent greenwashing. 

     

    Related Links

    Keywords: Middle East and Africa, Mauritius, Banking, ESG, COVID-19, Regulatory Capital, Sustainable Bonds, D-SIBs, Credit Risk, Debt to Income Ratio, DTI, RRE, Basel, D-SIBs, Greenwashing, BOM

    Featured Experts
    Related Articles
    News

    EBA Updates Filing Rules for Supervisory Reporting

    The European Banking Authority (EBA) published version 5.1 of the filing rules for supervisory reporting.

    October 19, 2021 WebPage Regulatory News
    News

    ECB Amends Guideline on Procedures for Collection of AnaCredit Data

    The European Central Bank (ECB) Guideline 2021/1829 on the procedures for the collection of granular credit and credit risk data has been published in the Official Journal of European Union.

    October 19, 2021 WebPage Regulatory News
    News

    ECB Amends Guideline on Procedures for Collection of AnaCredit Data

    The European Central Bank (ECB) Guideline 2021/1829 on the procedures for the collection of granular credit and credit risk data has been published in the Official Journal of European Union.

    October 19, 2021 WebPage Regulatory News
    News

    EBA Publishes Standards on Disclosure of Investment Policy Under IFR

    The European Banking Authority (EBA) published the final draft regulatory technical standards on disclosure of investment policy by investment firms, under the Investment Firms Regulation (IFR).

    October 19, 2021 WebPage Regulatory News
    News

    APRA Finalizes Guidance for New Prudential Standard on Remuneration

    The Australian Prudential Regulation Authority (APRA) published the prudential practice guide CPG 511 to assist banks, insurers, and superannuation licensees in meeting requirements of CPS 511, the new prudential standard on remuneration.

    October 18, 2021 WebPage Regulatory News
    News

    OCC Updated LIBOR Self-Assessment Tool for Banks

    The Office of the Comptroller of the Currency (OCC) published a bulletin that provides an updated self-assessment tool for banks to evaluate their preparedness for cessation of the London Interbank Offered Rate (LIBOR).

    October 18, 2021 WebPage Regulatory News
    News

    TCFD Updates Guidance for Financial Disclosures on Climate Risk

    The Financial Stability Board (FSB) published a report that examines the progress made toward disclosures aligned with recommendations of the Task Force on Climate-related Financial Disclosures (TCFD).

    October 14, 2021 WebPage Regulatory News
    News

    BCBS Report Examines Progress on Adoption of Basel III Framework

    The Basel Committee on Banking Supervision (BCBS) published the progress report on adoption of the Basel III regulatory framework in member jurisdictions.

    October 14, 2021 WebPage Regulatory News
    News

    ACPR Implements Updates Related to DPM Version 3.1

    The French Prudential Supervisory Authority (ACPR) has implemented, in its information system, updates linked to the Data Point Model (DPM) version 3.1.

    October 14, 2021 WebPage Regulatory News
    News

    EBA Note Examines Transition Risks of Benchmark Rates

    The European Banking Authority (EBA) published a thematic note that aims to identify and raise awareness of the transition risks of benchmark rates, as the London Interbank Offered Rate (LIBOR) and the Euro Overnight Index Average (EONIA) are close to being phased out.

    October 14, 2021 WebPage Regulatory News
    RESULTS 1 - 10 OF 7571