Regulatory Alerts2010-04-06
Guideline on Supervisory Review Process
The Bank of Mauritius issued this guideline to establish a standardized Supervisory Review Process (SRP) that ensures licensed banks maintain adequate capital relative to their risk profiles. The document mandates that banks implement a robust Internal Capital Adequacy Assessment Process (ICAAP) overseen by the board and senior management, while defining a comprehensive Supervisory Review and Evaluation Process (SREP) to assess regulatory capital, credit, market, operational, liquidity, and other material risks. Applying proportionately to local banking groups, foreign subsidiaries, and branches on an annual basis, the framework empowers supervisors to intervene early and require remedial action when capital levels fall below minimum thresholds.