Regulatory Alerts2022-04-01
Added · Updated
Bank of Mauritius Guideline on Standardised Approach to Credit Risk
The Bank of Mauritius mandates all licensed banks to apply a uniform Standardised Approach for calculating capital adequacy requirements on credit risk, covering on- and off-balance sheet exposures alongside eligible collateral and guarantees. The framework assigns specific risk weights to claims based on external credit assessments from recognized agencies, with preferential 0% treatment extended to domestic sovereigns, central banks, and highly rated multilateral development banks. Effective 1 April 2022, the guideline establishes detailed methodologies for calculating risk-weighted amounts, defining eligible borrowers and credit risk mitigation techniques to ensure consistent capital allocation across the banking sector.
More like this from BOM
We email you every new BOM publication the day it's published.