BoM Issued Revised Guideline on Credit Concentration Risk
The Bank of Mauritius (BoM) revised its guideline on credit concentration risk. This guideline applies to all banks and non-bank deposit taking institutions licensed under the Banking Act 2004. The revised guideline will come into effect from October 02, 2017.
Concentration risk may arise from excessive exposure to individuals or groups of counterparties and asset types. Safeguarding against credit concentration to different types of counterparties, industries, geographic regions, and asset classes must form the basis of concentration risk management. BoM through this guideline enunciates the regulatory credit concentration limits and the basic framework of credit concentration risk management to be put in place by financial institutions.
Related Link: Guideline (PDF)
Effective Date: October 02, 2017
Keywords: Middle East and Africa, Mauritius, Banking, Credit Risk, Credit Concentration Risk, BoM
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