BOM issued a guideline that sets out the minimum standards for banks in respect of their cross-border exposure. The guideline provides a risk-based management framework to mitigate the key cross-border banking risks. The guideline, developed in consultation with banks, supplements the existing guidelines in respect of the identification, measurement, management, and mitigation of credit risks. The guideline became applicable immediately on publication—that is, September 04, 2020—to banks licensed under the Banking Act 2004.
Regarding regulatory reporting, the guideline states that where a bank is affected by a material increase in underlying risks, such as credit, legal, or reputational risks, in connection with its cross-border exposure or is approached by foreign authorities regarding such matters, it shall immediately inform BOM. For transitional arrangements, banks shall fully implement the requirements of this guideline within three months from its effective date. The requirements under this guideline will not apply to fully cash collateralized cross-border exposure. However, banks are still expected to carry out a proper risk assessment before engaging in such transactions.
This guideline on cross-border exposure supplements the existing guidelines issued by BOM. These existing guidelines include the guideline on country risk management, the guideline on credit risk management, and the guideline on credit concentration risk.
Keywords: Middle East and Africa, Mauritius, Banking, Credit Risk, Concentration Risk, Cross-Border Exposure, BOM
Previous ArticleIFSB to Review Framework and Strategy for Islamic Finance
The European Banking Authority (EBA) published the final draft regulatory technical standards specifying and, where relevant, calibrating the minimum performance-related triggers for simple.
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.
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).
The Monetary Authority of Singapore (MAS) set out the Financial Services Industry Transformation Map 2025 and, in collaboration with the SGX Group, launched ESGenome.
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.
The International Organization of Securities Commissions (IOSCO) welcomed the work of the international audit and assurance standard setters—the International Auditing and Assurance Standards Board (IAASB)
The Bank of England (BoE) published a Statistical Notice (2022/18), which informs that due to the Bank Holiday granted for Her Majesty Queen Elizabeth II’s State Funeral on Monday September 19, 2022.
The French Prudential Control and Resolution Authority (ACPR) announced that the European Banking Authority (EBA) has updated its filing rules and the implementation dates for certain modules of the EBA reporting framework 3.2.
The European Central Bank (ECB) published a paper that examines how credit rating agencies accepted by the Eurosystem, as part of the Eurosystem Credit Assessment Framework (ECAF)
The Australian Prudential Regulation Authority (APRA) announced reduction in the aggregate Committed Liquidity Facility (CLF) for authorized deposit-taking entities to ~USD 33 billion on September 01, 2022.