4 October 2013, Bank of Mauritius
The Bank is concerned about the growing level of credit risk in certain sectors of the economy. The risk of a looming asset price bubble in the property market could potentially become a source of vulnerability for the financial system. As a proactive step, the Bank issued a Consultation Paper on Macroprudential Policy Measures on 28 May 2013 to the banking industry which has been finalised taking into account comments received.
Pursuant to section 100 of the Banking Act 2004 and section 50 of the Bank of Mauritius Act 2004, the Bank is today issuing five macroprudential measures for implementation by all banks. These measures are:
1: Loan-to-Value Ratio
2: Debt-to-Income Ratio
3: Risk-Weighted Assets
4: Additional Portfolio Provision
5: Sectoral Limit
The macroprudential measures can be accessed on the Bank’s website under the caption ‘Legislation, Guidelines and Compliance – Guidelines’ and will be implemented by banks in a phased manner.
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