Regulatory Alerts2023-08-15
Guideline on the Recognition and Use of External Credit Assessment Institutions
The Bank of Mauritius issued this revised guideline to establish the recognition criteria and regulatory use of External Credit Assessment Institutions (ECAIs) for calculating credit risk capital under the Standardised Approach. It mandates that banks utilize either direct or indirect recognition methods to verify an ECAI’s compliance with six eligibility criteria—objectivity, independence, transparency, disclosure, resources, and credibility—and map their ratings to appropriate risk weights. The framework further standardizes the treatment of unsolicited assessments, outlines application and ongoing review procedures, and requires published lists of eligible institutions to ensure consistent capital calculations across licensed banks.
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