Banking Sector in Mauritius

The Banking Sector in Mauritius The banking sector comprised 20 banks licensed to carry on banking business in Mauritius as at end-June 2011.Of these, eight were domestically-owned banks, seven were subsidiaries of foreign banks and five were branches of international banks. Reflecting efforts undertaken by the Bank to develop the range of services offered by banks in Mauritius, a new entrant joined the banking industry in March 2011 as the first bank licensed to conduct Islamic banking business. Despite the uncertain global economic environment, activity in the domestic banking system remains buoyant, driven in part by the relative strength of the domestic economy. Banks’ capital adequacy ratio remains comfortably above the 10 per cent regulatory capital requirement. As at end-March 2011 the banking sector’s total regulatory capital ratio increased to 17.2 per cent from 16.7 per cent recorded a year earlier. During this period, individual banks have relied mostly on their profits to generate internal capital to sustain balance sheet growth. They have not had any need of capital injection from the public sector, nor have they had to deleverage by shedding assets. Non-Bank Deposit-Taking Institutions The assets of Non-Bank Deposit-Taking Institutions (NBDTIs) represented around 6 per cent of total assets of banks. The growth of this sector has been relatively slow with total assets registering negative year-on-year growth rates between July and November 2010. As from December 2010, growth moved into positive territory to reach 2.7 per cent as at end-March 2011 compared to a 7.1 per cent growth rate at end-March 2010. Leasing facilities and loans are the main components of the assets of NBDTIs. As at end-March 2011, loans grew at a higher rate of 10.3 per cent compared to 8.4 per cent a year earlier. Leasing facilities, however, registered a larger contraction of 15.9 per cent as against a contraction of 8.8 per cent a year earlier.