The Bank of Mauritius was aware that banks might lack the required historical data on defaults in order to estimate losses accurately. This might partly explain the varying potential impact of the standard on the provision required by banks.
Conscious of the challenges ahead, the Bank of Mauritius revised its Guideline on Credit Impairment Measurement and Income Recognition, which will come into effect as from 1 January 2020. To ensure consistency and address the concerns on modelling risk, the Guideline sets regulatory floors for provisioning.