Regulatory Alerts2008-04-03
Guideline on Operational Risk Management and Capital Adequacy Determination
The Bank of Mauritius mandates all licensed banks to establish a comprehensive operational risk management framework and compute capital charges using standardized or advanced measurement methodologies. Banks must calculate a composite capital adequacy ratio of at least 10 percent by integrating operational risk charges with credit risk assets, utilizing the Basic Indicator, Standardised, or Advanced Measurement Approaches. The guideline requires quarterly submission of capital computation and internal loss data, while granting flexibility to adopt or revert between approaches subject to prior regulatory approval.
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