Featured Product

    IMF Report Suggests to Improve Bank Resolution Framework in Mauritius

    June 13, 2018

    IMF published the technical assistance report on strengthening bank resolution and crisis management framework in Mauritius. The contents of this report constitute technical advice provided by the IMF staff to the authorities of Mauritius, in response to their request for technical assistance.

    The report suggests that a new resolution framework is needed to effectively manage failing banks, safeguard financial stability, and limit moral hazard. The authorities should prepare and circulate guidance to banks on requirements for preparing and maintaining up-to-date recovery plans and specifying steps they would take to deal with shocks to their capital and/or liquidity. Moreover, formal plans describing how the resolution authority will manage the failure of individual banks and their groups need to be developed. Annex II of the report also provides status of the 2015 Financial Sector Assessment Program (FSAP) recommendations. The authorities have indicated their interest in formalizing and making the resolution and crisis management framework more efficient.

    The key priorities identified by the IMF staff include the following:

    • Formally designate which administrative bodies are to be responsible for the resolution of individual financial institution failures and for various forms of financial and mixed groups
    • Refine the existing legal framework for early intervention and triggering resolution
    • Adopt new legal powers to support timely and effective resolution of systemically important banks
    • Issue guidance to banks to routinely prepare recovery plans for dealing with potential shocks to their capital and/or liquidity and to provide feedback on those plans
    • Prepare resolution plans for banks and their groups
    • Identify and remedy impediments to timely and effective resolution of banks
    • Revise the Deposit Insurance Scheme (DIS) Bill needs to strengthen the financial safety net; the bill needs to be agreed between the Ministry of Finance and Economic Development (MoFED) and the central Bank of Mauritius (BoM) and submitted to the parliament
    • Adopt a formal policy framework for emergency liquidity assistance
    • Specify the role of the Financial Stability Committee (FinStab) in resolution activities
    • Put in place cross-border cooperation arrangements with relevant foreign supervisory and resolution authorities

     

    Related Link: Report

    Keywords: Middle East and Africa, Mauritius, Banking, FSAP, Resolution Framework, Crisis Management, Recovery Planning, IMF

    Related Articles
    News

    EBA Publishes Phase 2 of Technical Package on Reporting Framework 2.10

    EBA published phase 2 of the technical package on the reporting framework 2.10, providing the technical tools and specifications for implementation of EBA reporting requirements.

    July 10, 2020 WebPage Regulatory News
    News

    FASB Proposes to Delay Implementation of Insurance Contracts Standard

    FASB issued a proposed Accounting Standards Update that would grant insurance companies, adversely affected by the COVID-19 pandemic, an additional year to implement the Accounting Standards Update No. 2018-12 on targeted improvements to accounting for long-duration insurance contracts, or LDTI (Topic 944).

    July 09, 2020 WebPage Regulatory News
    News

    APRA Updates Regulatory Approach to Loan Deferrals Amid COVID Crisis

    APRA updated the regulatory approach for loans subject to repayment deferrals amid the COVID-19 crisis.

    July 09, 2020 WebPage Regulatory News
    News

    BCBS and FSB Set Out Recommendations for Benchmark Transition

    BCBS and FSB published a report on supervisory issues associated with benchmark transition.

    July 09, 2020 WebPage Regulatory News
    News

    IAIS Sets Out Recommendations for Benchmark Transition for Insurers

    IAIS published a report on supervisory issues associated with benchmark transition from an insurance perspective.

    July 09, 2020 WebPage Regulatory News
    News

    ESMA Updates Reporting Manual on European Single Electronic Format

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

    July 09, 2020 WebPage Regulatory News
    News

    EBA Calls on Resolution Authorities to Consider Impact of COVID Crisis

    EBA published a statement on resolution planning in light of the COVID-19 pandemic.

    July 09, 2020 WebPage Regulatory News
    News

    BCBS Finalizes Revisions to Credit Valuation Adjustment Risk Framework

    BCBS Finalizes Revisions to Credit Valuation Adjustment Risk Framework

    July 08, 2020 WebPage Regulatory News
    News

    ECB Guideline on Materiality Threshold for Credit Obligations Past Due

    ECB published a guideline (2020/97), in the Official Journal of European Union, on the definition of materiality threshold for credit obligations past due for less significant institutions.

    July 08, 2020 WebPage Regulatory News
    News

    FED Temporarily Revises FR Y-14 With Respect to PPP and CARES Act

    FED temporarily revised the capital assessments and stress testing reports (FR Y-14A/Q/M) to implement the changes in response to the COVID-19 pandemic.

    July 08, 2020 WebPage Regulatory News
    RESULTS 1 - 10 OF 5458