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
Featured Experts
Michael Denton, PhD, PE
Dr. Denton provides industry leadership in the quantification of sustainability issues, climate risk, trade credit and emerging lending risks. His deep foundations in market and credit risk provide critical perspectives on how climate/sustainability risks can be measured, communicated and used to drive commercial opportunities, policy, strategy, and compliance. He supports corporate clients and financial institutions in leveraging Moody’s tools and capabilities to improve decision-making and compliance capabilities, with particular focus on the energy, agriculture and physical commodities industries.
Previous Article
BCBS on Disclosure Standards for Market Risk and Sovereign ExposuresRelated Articles
EBA Clarifies Use of COVID-19-Impacted Data for IRB Credit Risk Models
The European Banking Authority (EBA) published four draft principles to support supervisory efforts in assessing the representativeness of COVID-19-impacted data for banks using the internal ratings based (IRB) credit risk models.
EP Reaches Agreement on Corporate Sustainability Reporting Directive
The European Council and the European Parliament (EP) reached a provisional political agreement on the Corporate Sustainability Reporting Directive (CSRD).
PRA Consults on Model Risk Management Principles for Banks
The Prudential Regulation Authority (PRA) launched a consultation (CP6/22) that sets out proposal for a new Supervisory Statement on expectations for management of model risk by banks.
EC Regulation Amends Standards for Calculating Credit Risk Adjustments
The European Commission (EC) published the Delegated Regulation 2022/954, which amends regulatory technical standards on specification of the calculation of specific and general credit risk adjustments.
BIS Hub Updates Work Program for 2022, Announces New Projects
The Bank for International Settlements (BIS) Innovation Hub updated its work program, announcing a set of projects across various centers.
EIOPA Issues Cyber Underwriting Proposal, Statement on Open Insurance
The European Insurance and Occupational Pensions Authority (EIOPA) published two consultation papers—one on the supervisory statement on exclusions related to systemic events and the other on the supervisory statement on the management of non-affirmative cyber exposures.
US Senate Members Seek Details on SEC Proposed Climate Disclosure Rule
Certain members of the U.S. Senate Committee on Banking, Housing, and Urban Affairs issued a letter to the Securities and Exchange Commission (SEC)
EIOPA Consults on Review of Securitization Framework in Solvency II
The European Insurance and Occupational Pensions Authority (EIOPA) published a consultation paper on the advice on the review of the securitization prudential framework in Solvency II.
UK Authorities Issue Regulatory and Reporting Updates for Banks
The Prudential Regulation Authority (PRA) issued a statement on PRA buffer adjustment while the Bank of England (BoE) published a notice on the statistical reporting requirements for banks.
BCBS Issues Climate Risk Principles while HKMA Expresses Its Support
The Basel Committee on Banking Supervision (BCBS) issued principles for the effective management and supervision of climate-related financial risks.
