Featured Product

    BoM Issued Revised Guideline on Credit Risk Management

    August 18, 2017

    The Bank of Mauritius, or BoM, issued revised guideline on credit risk management, which supplements the existing regulations and guidelines. Where this guideline imposes more stringent requirements than those in the existing regulations and guidelines, such requirements shall apply. The guideline supplements guidance provided in the International Accounting Standard (IAS) 39 of the IASB.

    The guideline specifies that the role of the board of directors and, through it, the chief executive officer, is to manage the credit activity of a financial institution with integrity. They shall remain accountable and liable for actions taken, or not taken, during the time they were in office, when such actions were called for using normal prudence. The guideline aims to: promote:

    Sound credit risk and valuation policies and practices dealing with loans and similar other financial instruments

    Sound risk management processes appropriate for the nature of business of the financial institution

    Adoption of an active, anticipatory approach to assessing risk and losses in the loan portfolio

    Adequate disclosure of provisions for credit losses, both collective and specific

     

    The guideline will become a focal point of reference for all requirements of the BoM for credit risk policy formulation and management. It applies to all deposit-taking financial institutions regulated by the BoM. A financial institution may want to establish a more comprehensive and sophisticated framework than that outlined in the guideline. This is acceptable, provided all essential elements of the guideline are fully taken into account.

     

    Related Link: Guideline on Credit Risk Management (PDF)

    Effective Date: August 18, 2017

    Keywords: Middle East and Africa, Mauritius, Banking, Credit Risk Management, Guidelines, BoM

    Related Articles
    News

    APRA Publishes Approach to Regulating and Supervising GCRA Risks

    APRA published an information paper that sets out a more intensive regulatory approach to transform governance, culture, remuneration, and accountability (GCRA) practices across the prudentially regulated financial sector.

    November 19, 2019 WebPage Regulatory News
    News

    IAIS Publishes Application Paper on Recovery Planning

    IAIS published the final application paper on recovery planning, along with the resolution of comments on the draft application paper.

    November 18, 2019 WebPage Regulatory News
    News

    FSB Publishes Summary of November Meeting of RCG for MENA Region

    FSB published a summary of the November meeting of the Regional Consultative Group (RCG) for Middle East and North Africa (MENA).

    November 17, 2019 WebPage Regulatory News
    News

    EBA Single Rulebook Q&A: Second Update for November 2019

    EBA updated the Single Rulebook question and answer (Q&A) tool with answers to eight questions that relate to the Bank Resolution and Recovery Directive (BRRD) and the Capital Requirements Regulation and Directive (CRR and CRD).

    November 15, 2019 WebPage Regulatory News
    News

    FASB Delays Effective Dates for CECL, Leases, and Hedging Standards

    FASB issued two Accounting Standards Updates finalizing the delays in effective dates for standards on current expected credit losses (CECL), leases, hedging, and long-duration insurance contracts.

    November 15, 2019 WebPage Regulatory News
    News

    ESMA Updates Q&A on Securitization Regulation in November 2019

    ESMA updated questions and answers (Q&A) on the Securitization Regulation (Regulation 2017/2402).

    November 15, 2019 WebPage Regulatory News
    News

    HKMA Announces Finalization of Banking Liquidity Amendment Rules 2019

    HKMA issued a letter informing all authorized institutions that negative vetting of the Banking (Liquidity) (Amendment) Rules 2019 (BLAR) has now expired. Thus, the BLAR will now come into operation from January 01, 2020.

    November 15, 2019 WebPage Regulatory News
    News

    FSI Examines Use of Red Team Testing to Enhance Cyber Resilience

    The Financial Stability Institute (FSI) of BIS published a paper that examines the contribution of red team testing frameworks toward enhancing cyber resilience.

    November 15, 2019 WebPage Regulatory News
    News

    BCBS Consults on Revised Disclosures for Market Risk Framework

    BCBS launched a consultation on the revised disclosure requirements for the market risk framework for banks.

    November 14, 2019 WebPage Regulatory News
    News

    BCBS Consults on Disclosure Templates of Sovereign Exposures of Banks

    BCBS published a consultation on the voluntary disclosure templates related to sovereign exposures of banks.

    November 14, 2019 WebPage Regulatory News
    RESULTS 1 - 10 OF 4164