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 Analyzes Impact of Unwind Mechanism of Liquidity Coverage Ratio

    EBA published a report analyzing the impact of the unwind mechanism of the liquidity coverage ratio (LCR) for a sample of European banks over a three-year period, from the end of 2016 to the first quarter of 2020.

    November 19, 2020 WebPage Regulatory News
    News

    ECB Outlines Views on Possible Changes to AnaCredit Rule and TLTROs

    In response to questions from a member of the European Parliament, the ECB President Christine Lagarde issued a letter clarifying the possibility of amending the AnaCredit Regulation and making targeted longer-term refinancing operations (TLTROs) dependent on the climate-related impact of bank loans.

    November 19, 2020 WebPage Regulatory News
    News

    IASB Begins First Phase of Post-Implementation Review of IFRS 9

    IASB started the post-implementation review of the classification and measurement requirements in IFRS 9 on financial instruments and added the review as a project to its work plan.

    November 18, 2020 WebPage Regulatory News
    News

    FSB Report Examines Progress in Resolvability of Systemic Institutions

    FSB published a report that examines progress in implementing policy measures to enhance the resolvability of systemically important financial institutions.

    November 18, 2020 WebPage Regulatory News
    News

    EBA Benchmarks National Insolvency Frameworks Across EU

    EBA published a report on the benchmarking of national loan enforcement frameworks across 27 EU member states, in response to the call for advice from EC.

    November 18, 2020 WebPage Regulatory News
    News

    FSB Reports Assess Impact of Pandemic on Financial Stability

    FSB published a letter from its Chair Randal K. Quarles, along with two reports exploring various aspects of the market turmoil resulting from the COVID-19 event.

    November 17, 2020 WebPage Regulatory News
    News

    RBNZ Consults on Implementation of Capital Review Changes

    RBNZ launched a consultation on the details for implementing the final Capital Review decisions announced in December 2019.

    November 17, 2020 WebPage Regulatory News
    News

    IASB Announces Andreas Barckow as the New Chair from July 2021

    The Trustees of the IFRS Foundation, which are responsible for the governance and oversight of IASB, have announced the appointment of Dr. Andreas Barckow as the IASB Chair, effective July 2021.

    November 17, 2020 WebPage Regulatory News
    News

    HKMA Consults on Capital Rules for Bank Equity Investments in Funds

    HKMA issued a letter to consult the banking industry on a full set of proposed draft amendments to the Banking (Capital) Rules for implementing the Basel standard on capital requirements for banks’ equity investments in funds in Hong Kong.

    November 17, 2020 WebPage Regulatory News
    News

    ESRB Supports Extension of Macro-Prudential Measure by Swedish FSA

    ESRB published an opinion assessing the decision of Swedish Financial Supervisory Authority (FSA) to extend the application period of a stricter measure for residential mortgage lending, in accordance with Article 458 of the Capital Requirements Regulation (CRR).

    November 17, 2020 WebPage Regulatory News
    RESULTS 1 - 10 OF 6153