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

    BIS Paper Studies Impact of Fintech Lending on Small Businesses in US

    The Bank for International Settlements (BIS) published a paper that studies impact of fintech lending on credit access for small businesses in U.S.

    September 26, 2022 WebPage Regulatory News

    UK Regulators Issue CRR Changes and Stress Test Scenarios for Banks

    The Prudential Regulation Authority (PRA) issued the policy statement PS8/22 to amend the Own Funds and Eligible Liabilities (CRR) Part of the PRA Rulebook and update the supervisory statement SS7/13 titled "Definition of capital (CRR firms).

    September 26, 2022 WebPage Regulatory News

    EBA Launches EU-Wide Transparency Exercise in 2022

    The European Banking Authority (EBA) launched the EU-wide transparency exercise for 2022, with results of the exercise expected to be published at the beginning of December, along with the annual Risk Assessment Report.

    September 23, 2022 WebPage Regulatory News

    SRB on CRR Quick-Fix to Policy for Multiple Point of Entry Banks

    The Single Resolution Board (SRB) welcomed the adoption of the review of the Capital Requirements Regulation, or CRR, also known as the "CRR quick-fix."

    September 22, 2022 WebPage Regulatory News

    EC Rule Lists Advanced Economies for Market Risk Capital Calculations

    The European Commission (EC) recently adopted the Delegated Regulation 2022/1622, which sets out the regulatory technical standards to specify the countries that constitute advanced economies for the purpose of specifying risk-weights for the sensitivities to equity.

    September 21, 2022 WebPage Regulatory News

    EBA Publishes Final Regulatory Standards on STS Securitizations

    The European Banking Authority (EBA) published the final draft regulatory technical standards specifying and, where relevant, calibrating the minimum performance-related triggers for simple.

    September 20, 2022 WebPage Regulatory News

    ECB Further Reviews Costs and Benefits Associated with IReF

    The European Central Bank (ECB) is undertaking the integrated reporting framework (IReF) project to integrate statistical requirements for banks into a standardized reporting framework that would be applicable across the euro area and adopted by authorities in other EU member states.

    September 15, 2022 WebPage Regulatory News

    EBA Publishes Funding Plans Report, Receives EMAS Certification

    The European Banking Authority (EBA) has been awarded the top European Standard for its environmental performance under the European Eco-Management and Audit Scheme (EMAS).

    September 15, 2022 WebPage Regulatory News

    MAS Launches SaaS Solution to Simplify Listed Entity ESG Disclosures

    The Monetary Authority of Singapore (MAS) set out the Financial Services Industry Transformation Map 2025 and, in collaboration with the SGX Group, launched ESGenome.

    September 15, 2022 WebPage Regulatory News

    BCBS to Finalize Crypto Rules by End-2022; US to Propose Basel 3 Rules

    The Basel Committee on Banking Supervision met, shortly after a gathering of the Group of Central Bank Governors and Heads of Supervision (GHOS), the oversight body of BCBS.

    September 15, 2022 WebPage Regulatory News
    RESULTS 1 - 10 OF 8521