Governor Aunauth Beejadhur was tested right at the very beginning of his tenure of office. In 1971, major amendments to the Bank of Mauritius Act were carried out. Pressingly, a Research Department was created the purpose and objective of which was to conduct research and  5  economic analyses and policy recommendations to the management.
In 1974, Herstatt Bank, a privately owned German bank, went bankrupt in a famous incident that serves to explain settlement risks to students of banking and finance. As a result, the Bank of England then decided to focus a lot more on regulation and supervision of financial institutions. That incident had paved the way for the Basel Committee on Banking Regulation and Supervisory Practices.