Mauritius’s central bank needs new powers to allow it to step in earlier to deal with troubled banks, an International Monetary Fund staff report says.

“A new resolution framework is needed to effectively manage failing banks, safeguard financial stability, as well as limit moral hazard,” IMF staff said in a report published on June 13.

The IMF team visited Mauritius after the central bank requested technical assistance on resolution and crisis management.

Following an extensive review, the