Regulatory Alerts2022-08-22
Guideline on Cross-Border Exposure
The Bank of Mauritius issued this revised guideline to establish minimum standards for identifying, measuring, and mitigating credit risk associated with cross-border exposures of licensed banks. It mandates comprehensive board-approved policies, robust governance structures with independent control functions and external audits, and a dynamic risk appetite framework covering country-specific limits and specialized lending. Banks must conduct rigorous due diligence on overseas counterparties, jurisdictions, and third-party service providers while ensuring enforceable collateral, adequate staff expertise, and timely regulatory reporting.
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