This reserve includes movement in fair value in relation to financial assets measured at FVTOCI.

This reserve represents transfers from retained earnings in accordance with the Banking Act 2004. A sum equal to not less than 15% of the Bank’s profit for the year is transferred each year until the balance is equal to the amount paid as stated capital.

This reserve comprises amounts set aside for general banking risks, including future losses and other unforeseen risks. It also includes provision made to meet other regulatory provision including country risk.

This reserve arises on retranslation of foreign operations on consolidation.

The Bank has accounted for the incremental regulatory provision through a charge to the equity as allowed in Bank of Mauritius Guideline on ‘Credit Impairment Measurement and Income Recognition (April 2016)’ and
‘Additional Macroprudential Measures For the Banking Sector (January 2015)’. The incremental provision is recognised in provision reserve. This reserve is non-distributable.