The Bank of Mauritius, the central bank, established in September 1967, is responsible for maintaining price stability and for conducting monetary policy with the aim of promoting orderly and balanced economic development. The Bank of Mauritius has also the duty to regulate credit and currency in the interest of economic growth and to ensure the development of a stable and sound financial system.
The Bank of Mauritius controls the foreign exchange reserves of the country Mauritius; manages the clearing, payment and settlement systems and generally formulates and implements policies to enhance economic activities, taking into consideration domestic and international economic developments.
The Bank of Mauritius also oversees financial institutions to determine their soundness, stability and their compliance with governing laws, rules and regulations. It regulates and supervises banking institutions and non-bank deposit-taking financial institutions under the provisions of the Banking Act 2004 and the Bank of Mauritius Act 2004. Money changers and foreign exchange dealers also fall under the purview of the Bank of Mauritius. The regulatory and supervisory functions exercised by the Bank include:
- Issuing of prudential regulations to be observed by financial institutions;
- Carrying out on-site inspection and off-site surveillance of such institutions;
- The processing of applications for banking licenses as well as authorisations for non-banking deposit taking activity, money changers and foreign exchange dealers
In line with best international practice, the Bank of Mauritius has committed to the implementation of the 25 Core Principles for Effective Banking Supervision set by the Basel Committee on Banking Supervision (BCBS). These Core Principles provide an internationally agreed framework for effective banking supervision. Furthermore, the Bank of Mauritius forms part of the Offshore Group of Banking Supervisors and the Eastern and Southern Africa Banking Supervisors Group.
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