Regulatory Alerts2021-06-28
Guideline on Scope of Application of Basel III and Eligible Capital
The Bank of Mauritius issued this revised guideline to implement the Basel III capital framework for all licensed banks, effective 28 June 2021. It establishes strict eligibility criteria for Common Equity Tier 1, Additional Tier 1, and Tier 2 capital instruments while mandating minimum capital adequacy ratios of 6.5 percent, 8.0 percent, and 10.0 percent against risk-weighted assets respectively. The document further details mandatory regulatory adjustments, transitional phase-in arrangements, and solo and group-level reporting requirements to ensure banks maintain sufficient loss-absorbing capacity during financial stress.
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