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
Nicolas Degruson
Works with financial institutions, regulatory experts, business analysts, product managers, and software engineers to drive regulatory solutions across the globe.
Karen Moss
Senior practitioner in asset and liability management (ALM) and liquidity risk who assists banking clients in advancing their treasury and balance sheet management objectives
Previous Article
PRA Consults on Stressed VaR and RNIV Calculations Under Market RiskRelated Articles
OSFI Finalizes on Climate Risk Guideline, Issues Other Updates
The Office of the Superintendent of Financial Institutions (OSFI) is seeking comments, until May 31, 2023, on the draft guideline on culture and behavior risk, with final guideline expected by the end of 2023.
BIS Paper Examines Impact of Greenhouse Gas Emissions on Lending
BIS issued a paper that investigates the effect of the greenhouse gas, or GHG, emissions of firms on bank loans using bank–firm matched data of Japanese listed firms from 2006 to 2018.
HMT Mulls Alignment of Ring-Fencing and Resolution Regimes for Banks
The HM Treasury (HMT) is seeking evidence, until May 07, 2023, on practicalities of aligning the ring-fencing and the banking resolution regimes for banks.
BCBS Report Examines Impact of Basel III Framework for Banks
The Basel Committee on Banking Supervision (BCBS) published results of the Basel III monitoring exercise based on the June 30, 2022 data.
PRA Consults on Prudential Rules for "Simpler-Regime" Firms
Among the recent regulatory updates from UK authorities, a key development is the first-phase consultation, from the Prudential Regulation Authority (PRA), on simplifications to the prudential framework that would apply to the simpler-regime firms.
DNB Publishes Multiple Reporting Updates for Banks
DNB, the central bank of Netherlands, updated the list of additional reporting requests and published additional data quality checks and XBRL-Formula linkbase documents for the first quarter of 2023.
NBB Sets Out Climate Risk Expectations, Issues Reporting Updates
The National Bank of Belgium (NBB) published a communication on climate-related and environmental risks, issued an update on XBRL reporting
EBA Updates Address Securitization Standards and DGS Guidelines
The European Banking Authority (EBA) published the final draft of the regulatory technical standards that set out conditions for assessment of homogeneity of the underlying exposures in simple, transparent, and standardized (STS) securitizations.
FSB Publishes Letter to G20, Sets Out Work Priorities for 2023
The Financial Stability Board (FSB) published a letter intended for the G20 Finance Ministers and Central Bank Governors, highlighting the work that FSB will take forward under the Indian G20 Presidency in 2023
ISSB Standards May Become Effective from January 2024
The International Organization of Securities Commissions (IOSCO) welcomed the confirmation statement by the International Sustainability Standards Board (ISSB) setting out its progress in the development of its first sustainability-related corporate disclosure standards.
