PUBLIC NOTICE
TRANSITIONAL ARRANGEMENTS FOR REGULATORY
CAPITAL TREATMENT OF IFRS 9 PROVISIONS
13 January 2021
In the current economic context, and in line with arrangements being made by central banks and other regulatory institutions around the world, the Bank of Mauritius ("Bank") is introducing transitional arrangements for the regulatory capital treatment of IFRS 9 provisions. This decision aims at alleviating the impact of the COVID-19 pandemic on the provisioning levels of banks and non-bank deposit taking institutions ("financial institutions").
The transitional arrangements will allow financial institutions to add back a portion of their IFRS 9 provisions to their regulatory capital. These arrangements, which will start this year, will phase out over a 4-year period.
Financial institutions electing to apply the above-mentioned transitional arrangements will be required to make a disclosure on same in their audited financial statements.
The details of the transitional arrangements are annexed for ease of reference. The documents are also available on the Bank's website on https://www.bom.mu/financial- stability/supervision/guideline
B A N K O F M A U R I T I U S S i r W i l l i a m N e w t o n S t r e e t , P o r t L o u i s , M a u r i t i u s
Telephone: +230 202 3800 | Email: communications@bom.mu | Website: www.bom.mu |
BOM/BSD 42/January 2021
BANK OF MAURITIUS
Transitional Arrangements for Regulatory Capital Treatment of
IFRS 9 Provisions under Expected Credit Losses
January 2021
Table of Contents | ||
Introduction................................................................................................................................................. | 1 | |
Transitional arrangements for regulatory capital treatment of IFRS 9 provisions for expected | ||
credit losses (ECL) ...................................................................................................................................... | 2 | |
Annex 1 | - Example of calculation of transitional arrangements ............................................................ | 4 |
Annex 2 | - Return for transitional arrangements for banks .................................................................... | 6 |
Annex 3 | - Return for transitional arrangement for non-bank deposit taking institutions .................. | 8 |
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Bank of Mauritius published this content on 13 January 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 13 January 2021 13:29:03 UTC