Regulatory Alerts2017-08-18
Guideline on Credit Risk Management
The Bank of Mauritius mandates all deposit-taking financial institutions to establish a comprehensive written credit risk policy defining risk tolerance, approval authorities, concentration limits, and portfolio engagement areas. The guideline assigns the board of directors annual policy approval and oversight duties while requiring chief executives to implement robust appraisal criteria, risk management committees, management information systems, and internal controls. Financial institutions must continuously monitor portfolio quality, conservatively value collateral and provisions, report significant exposures bi-annually, and ensure strict compliance with impairment measurement standards to safeguard asset quality.
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