Question1. The 'International Convergence of Capital Measurement and Capital Standards: A Revised Framework' also known as Basel II has brought some new approaches in measuring credit and operational risks. Following the financial crisis 2007, the Basel Committee on Banking Supervision developed a complete set of reform measures to strengthen the regulation, supervision and risk management of the banking sector, also recognized as Basel III. Discuss the credit risk and operational risk approaches embedded within Basel II and III.
Question2. In 2004, the Basel Committee on Banking Supervision conducted a study on bank failures in eight countries and examined the reasons for failures, how the failures were resolved and what regulatory changes followed from these bank failures. Select any two countries and comment on the causes of failure and the corrective measures that were subsequently taken.
Question3. The new Guideline on Corporate Governance relates to the processes and structures that must be put in place in order to direct and manage the business and affairs of an institution with the objective of ensuring its safety and soundness while improving shareholder value. Critically measure this new Guideline and highlight any other legislation put in place to enhance good corporate governance in Mauritius.
Question4. In brief highlight the restrictions imposed on locally incorporated banks in Mauritius for them to remain focused on their credit concentration risk.