Regulatory Alerts2019-08-22
Guideline on Credit Concentration Risk
The Bank of Mauritius issued this guideline to establish regulatory credit concentration limits and risk management frameworks for all licensed banks and non-bank deposit-taking institutions. It mandates specific exposure caps relative to Tier 1 capital, including maximum limits of 25 percent for single customers and 40 percent for connected groups, while requiring boards to implement annual stress tests and robust monitoring systems. Financial institutions must report large exposures quarterly, apply permitted set-offs against regulatory limits, and submit compliance plans within three months of the effective date to avoid breaches or higher capital charges.
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