Regulatory Alerts2014-06-30
Guideline for Dealing with Domestic-Systemically Important Banks
The Bank of Mauritius issued this June 2014 guideline to establish a framework for identifying Domestic-Systemically Important Banks (D-SIBs) and imposing higher capital requirements. The regulator applies a five-parameter, indicator-based scoring system that evaluates size, exposure to large groups, interconnectedness, substitutability, and complexity to assign banks to specific capital surcharge buckets. Designated D-SIBs must maintain additional Common Equity Tier 1 capital ranging from 1.0 percent to 3.5 percent of risk-weighted assets, with phased implementation beginning in January 2016 and full effect by January 2019.
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