Regulatory Alerts2023-03-09
Guideline on Liquidity Risk Management
The Bank of Mauritius mandates all licensed banks to implement a robust liquidity risk management framework that ensures sufficient unencumbered high-quality liquid assets to withstand institutional and market-wide stress scenarios. The guideline requires boards and senior management to establish clear risk tolerances, conduct regular stress tests using maturity ladders, and maintain documented contingency funding plans alongside public disclosures. Effective January 11, 2021, the revised framework aligns domestic operations with Basel Committee principles by enforcing strict Liquidity Coverage Ratio calculations and monitoring cross-currency funding transferability.
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