Regulatory Alerts2022-06-29
Added · Updated
Additional Macroprudential Measures for the Banking Sector
The Bank of Mauritius has issued additional macroprudential measures to mitigate systemic risks within the national banking sector by mandating specific risk-weighted asset calculations, general provisioning requirements, and loan-to-value ratios for residential and commercial real estate loans. Banks must apply tiered risk weights based on loan amounts and Property Development Scheme status, implement sector-specific additional general provisions ranging from 0.5% to 1.0%, and enforce a maximum 80% loan-to-value ratio for self-employed individuals while permitting higher ratios under strict credit assessment criteria. These standardized requirements, effective through multiple revisions up to June 2022, directly govern fund-based and non-fund-based credit facilities for property purchase and construction to ensure early provisioning against rising corporate indebtedness and non-performing loans.