Section 29: Limitation on concentration of risk

29. Limitation on concentration of risk (1) The central bank shall, by way of guidelines, set out regulatory credit concentration limits related to the capital base of a bank in respect of— (a) individual large credit exposure, including off balance sheet commitments, to any one customer or group of closely-related customers; and (b) aggregate amount of large credit exposure to all customers and groups of closely-related customers. (2) The central bank may issue instructions to banks, clarifying who is deemed a customer or group of closely-related customers under subsection (1). (3) Any instructions issued by the central bank shall be in writing and binding on the banks. (4) The central bank may exempt from compliance with this section as it deems fit, the part of a bank’s banking business or investment banking business that is conducted in currencies other than Mauritius currency.