Regulatory Alerts2022-06-23
Guideline on Stress Testing
The Bank of Mauritius issued this guideline to establish eight core principles for licensed banks to implement a robust stress testing framework aligned with Basel Committee standards. Banks must ensure board oversight, conduct stress tests every six months with quarterly scenario reviews, and maintain adequate data infrastructure, skilled personnel, and validated models to capture material risks including climate and operational exposures. The guideline mandates half-yearly reporting to the board, requires full compliance by November 2022, and allows foreign bank branches to utilize parent frameworks provided they meet local regulatory expectations.
Share