BoM Revises Guidelines on Liquidity Risk and Dividend Payments
BoM revised the guideline on the management of liquidity risk and the guideline on dividend payments by institutions in Mauritius. As part of the revisions to the liquidity risk management guideline, BoM also published updated templates for Liquidity Coverage Ratio, Maturity Mismatch Profile of Assets and Liabilities, and Liquidity Coverage Ratio Disclosures. The effective date for both these guidelines is September 24, 2020.
The liquidity risk guideline is in line with the BCBS principles and standards on the management of liquidity risk. BoM expects all institutions to have appropriate risk control measures to identify, manage, and monitor liquidity risk exposures under various stress situations to protect their operations from disruption and adverse financial consequences. This guideline is applicable to all banks licensed by BoM.
The guideline on dividend payments sets out the minimum criteria and requirements for all bank and non-bank deposit-taking institutions for the declaration and payment of dividend or other transfers from profits. It offers a forward-looking approach to the preservation of capital of banks and non-bank deposit-taking institutions. It ensures these financial institutions maintain adequate capital buffers, especially in the current stressed economic environment, to absorb any losses and preserve their financial soundness.
Related Links
- Guideline on Liquidity Risk (PDF)
- Associated Templates
- Media Release on Dividend Payments Guideline
- Guideline on Dividend Payments
Effective Date: September 24, 2020
Keywords: Middle East and Africa, Mauritius, Banking, Liquidity Risk, LCR, Reporting, Disclosures, Basel, Dividend Distribution, Basel, BoM
Featured Experts
María Cañamero
Skilled market researcher; growth strategist; successful go-to-market campaign developer
Pierre-Etienne Chabanel
Brings expertise in technology and software solutions around banking regulation, whether deployed on-premises or in the cloud.
Nicolas Degruson
Works with financial institutions, regulatory experts, business analysts, product managers, and software engineers to drive regulatory solutions across the globe.
Previous Article
ACPR to Replace SURFI Taxonomy With RUBA Taxonomy from January 2022Related Articles
FED Proposes to Extend Data Collection Under Stress Testing Guidance
FED proposed three-year extension, without revision, of the information collection FR 4202, titled "Recordkeeping Provisions Associated with Stress Testing Guidance."
FCA Proposes Updates to Guidance on Mortgage Repossessions
FCA updated the draft guidance for firms to ensure that mortgage customers whose homes may be repossessed are treated fairly and appropriately, particularly where there are risks of harm to customers who are vulnerable as a result of the COVID-19 pandemic.
FCA Announces Cessation Timeline for Certain LIBOR Benchmark Settings
FCA issued a statement on the cessation or loss of representativeness of the 35 LIBOR benchmark settings published by ICE Benchmark Administration or IBA.
EBA Publishes Reporting and Disclosures Framework for Investment Firms
EBA published a package that includes the final draft implementing technical standards on supervisory reporting and disclosures of investment firms.
BIS Examines Use of Big Data and Machine Learning at Central Banks
BIS published a paper that provides an overview on the use of big data and machine learning in the central bank community.
APRA Finalizes Reporting Standard for Operational Risk Requirements
APRA finalized the reporting standard ARS 115.0 on capital adequacy with respect to the standardized measurement approach to operational risk for authorized deposit-taking institutions in Australia.
ECB Publishes Guide for Determining Penalties for Regulatory Breaches
ECB published a guide that outlines the principles and methods for calculating the penalties for regulatory breaches of prudential requirements by banks.
MAS Sets Out Good Practices to Manage Operational Risks Amid COVID
MAS and The Association of Banks in Singapore (ABS) jointly issued a paper that sets out good practices for the management of operational and other risks stemming from new work arrangements adopted by financial institutions amid the COVID-19 pandemic.
ACPR Announces New Data Collection Application for Banks and Insurers
ACPR announced that a new data collection application, called DLPP (Datalake for Prudential), for collecting banking and insurance prudential data will go into production on April 12, 2021.
BCB Maintains CCyB at 0%, Initiates First Cycle of Regulatory Sandbox
BCB announced that the Financial Stability Committee decided to maintain the countercyclical capital buffer (CCyB) for Brazil at 0%, at least until the end of 2021.
