Section 5: Functions of Bank

5. Functions of Bank (1) The Bank shall have such functions as are necessary to achieve the attainment of its objects and shall, in particular— (a) conduct monetary policy and manage the exchange rate of the rupee, taking into account the orderly and balanced economic development of Mauritius; (b) regulate and supervise— (i) financial institutions carrying on activities in, or from within, Mauritius; (ii) ultimate and intermediate financial holding companies, incorporated in Mauritius, which have, within the group, at least one subsidiary or joint venture, or such other ownership structure as the Bank may determine, which is a bank or nonbank deposit taking institution licensed by the Bank; (c) manage, in collaboration with other relevant supervisory and regulatory bodies, the clearing, payment and settlement systems of Mauritius; (d) collect, compile, disseminate, on a timely basis, monetary and related financial statistics; and (e) manage the foreign exchange reserves of Mauritius. B2 – 5 [Issue 9] Bank of Mauritius Act (2) The Bank shall— (a) for the purposes of subsection (1) (a), determine, with the concurrence of the Minister, the accepted range of the rate of inflation during a given period consistent with the pursuit of the price stability objective; (b) for the purposes of subsection (1) generally, formulate and implement appropriate policies to promote economic activities having due regard to domestic and international economic developments. (3) For the purposes of section 4 (2), the Bank shall— (a) ascertain and promote the soundness of financial institutions and their compliance with governing laws, rules and regulations; (b) ensure the adoption by financial institutions of policies and procedures designed to control and manage risks effectively; (c) adopt policies to safeguard the rights and interests of depositors and creditors of financial institutions, having due regard to the need for financial institutions to compete effectively in the market and take reasonable risks; (d) monitor system-wide factors that might have or potentially have a negative impact on the financial condition of financial institutions; (e) promote public understanding of the financial system, including awareness of the benefits and risks associated with different financial products regulated by the Bank, which are offered by financial institutions; (f) carry out investigations and take measures to suppress illegal, dishonourable and improper practices, market abuse and any potential breach of the banking laws. [S. 5 amended by s. 2 (b) of Act 27 of 2013 w.e.f. 21 December 2013; s. 2 (a) of Act 18 of 2016 w.e.f. 7 September 2016.]