BoM Updates Template Related to Standardized Approach to Credit Risk
BoM updated the return CAR0100 titled "Statement of Capital Adequacy Calculation." With respect to the latest amendments to the guidelines on recognition and use of External Credit Assessment Institutions (ECAIs) and on the standardized approach to credit risk, relevant adjustments to the CAR0100 return are still at the development stage in XBRL.
In the interim and until further notice, banks are requested to take the following actions:
- Banks are requested to continue to submit CAR0100 return through XBRL as per the existing XBRL template, which is based on the previous versions of the guidelines.
- In the event that bank is impacted by the revised guidelines, it should, in addition to the XBRL version, concurrently submit an Excel version of the return, along with a reconciliation statement. The Excel version of the return should be submitted through Mauritius Automated Clearing and Settlement System (MACSS). BoM is allowing banks to submit the Excel-based return for the quarter ended March 31, 2018, if applicable, by May 21, 2018.
The standardized approach to credit risk requires banks to use credit assessments provided by ECAIs that are recognized by national supervisors as eligible for regulatory capital purposes, to determine the risk-weights on their credit exposures. The guideline on standardized approach to credit risk provides a framework for banks to apply a uniform approach to the measurement of risks related to their on- and off-balance sheet credit exposures for capital adequacy purposes.
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Keywords: Middle East and Africa, Mauritius, Banking, Credit Risk, Standardized Approach, CAR0100, ECAIs, Reporting, BoM
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