per se requires the fundamental ingredient of instilling trust and confidence. supervisors and authorities responsible for financial stability are presently contemplating the best options for strengthening of the risk sensitivity of the prudential framework, in the expectation of the emergence of a new financial architecture. one area remains that in the best interest of one and all, there should be increased trust - based cooperation between the financial service provider and the oversight authority. this basic ingredient is no doubt key to a continued successful development of an efficient and secure market infrastructure that meets the fast - changing needs of our financial sector. mutual cooperation can but benefit our financial system. while hsbc bank is engaged in marketing its custodian service provider role, our economy shall certainly gain in the process – our jurisdiction is projected in the global business arena as a credible international financial centre. allow me to congratulate this initiative of hsbc group and convey my best wishes to the management and staff of hsbc bank ( mauritius ) limited. i thank you for your attention. bis central bankers ’ speeches

of their institution ’ s state of preparedness. as of date, out of 23 banks, 20 have made presentations at the bank on their ifrs 9 implementation plans. the remaining banks are scheduled to make presentations shortly. it is observed from the information submitted by banks that subsidiaries of the international banks were, as expected, better prepared than others to implement ifrs9 given the technical expertise available at group level. domestic and smaller banks have hired the services of accounting firms to assist them in the implementation of ifrs 9. the main challenges faced by banks are the unavailability and poor quality of historical credit loss data - under ias39, banks have been delaying provisioning on non - performing loans by evergreening or restructuring these loans -, the absence of good databases, inadequate it systems and lack of skilled and well - trained human resources. the bank of mauritius has directed banks to embark on a trial run from this year with a view to assessing the likely impact of ifrs9 implementation on their profitability. given that ifrs 9 is also applicable to the non - bank deposit - taking institutions, the latter was also requested to submit to the bank an implementation plan and to make a presentation on their state of preparedness. internally, the bank of mauritius has constituted a team of supervisors which is tasked to periodically review implementation progress of ifrs 9. concluding note at this juncture, we are cautiously optimistic that we shall be able to roll - out the implementation of ifrs9 on the due date but lots of uncertainties remain. we have started very late in the process of implementation, i. e., in 2016, when we should probably have done so as early as beginning 2015. cleaning of the data and constituting a long - enough historical database at the required granularity for deriving meaningful model results remains the single biggest challenge. furthermore, it is highly likely that banks within the same jurisdiction would apply the new accounting rules differently through their own different methodologies and approaches to ecl modelling – some may be closer than others to the “ true ” or “ correct ” ecl model. the challenge for the supervisor would be to have superior knowledge to be able to assess the data quality as well as which approaches to ecl modelling would yield the correct numbers. the deloitte ’ s global banking survey of ifrs 9 in 2016 had a question on the state of readiness for ifrs 9 by the deadline of 1 january 2018 and almost 50 per cent of the respondents said