BOM Issues Multiple Regulatory Updates in November 2021
Recent announcements from the Bank of Mauritius (BoM) include revisions to the guideline on dividend payments by deposit-taking institutions, a climate change pledge, and the issuance of a banking license to the Silver Bank Limited on November 11, 2021. Silver Bank Limited, which was formerly known as BanyanTree Bank Limited (license for this bank was cancelled), will start its operations from November 16, 2021. In its climate change pledge, BOM committed to issuing a guideline on climate-related and environmental financial risk management by the first quarter of 2022.
The revised guideline on dividend payments sets out the minimum criteria and requirements for deposit taking institutions prior to declaring dividend payments or other transfers from profits. The guideline provides the regulatory framework for the declaration and payment of dividend or other transfers from profits. The guideline stipulates that every deposit-taking institution seeking to declare dividend or other transfers from profits shall submit to BOM an application in writing, along with certain documents. In addition to the earlier specified documents, BNM now (as per the revised guideline) also requires institutions to submit the financial forecasts (under baseline and stress scenarios) and assumptions for a period of 12 months from the date of distribution of profits. The deposit-taking institutions are expected to fully implement the requirements of this guideline within three months from its effective date. The guideline is issued under the authority of section 50 of the Bank of Mauritius Act 2004 and section 100 of the Banking Act 2004. The guideline shall apply to all deposit-taking institutions licensed under the Banking Act 2004. The initial version of the guideline had come into effect on September 24, 2020.
Related Links
- Notice on Climate Change Pledge
- Climate Change Pledge
- Guideline on Dividend Payment
- Notice on Banking License
Keywords: Middle East and Africa, Mauritius, Banking, Dividend Distribution, Bank Licenses, Climate Change Risk, COP 26, Guidance, ESG, BOM
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