As for Foreign Exchange Earnings, as very few inputs are imported, net foreign exchange earnings are again substantial. In essence, the domestically focused banks who have traditionally adopted a conservative business model are deemed to be sound, resistant to shocks and able to absorb impairments incurred on their respective deteriorating loan books. This article features in the , a special focus on the Banking Sector in Africa, with an overview of the current trends and opportunities in the Sector. For the wider sector, there is also a need to attract international players to the jurisdiction to move up the value-chain of services. Having been designed to provide convenience, fiscal efficiency, and risk mitigation for companies engaged in international operations, it has been instrumental in driving investment and growth across continents. He added that the Africa we know is changing with connectivity, diseases like Ebola and so on but perhaps the United States of Africa may become a reality and maybe the central banking of Africa could also become a reality with a common central bank and a common currency. The principal risks facing the domestic financial system are linked to the structure of the underlying economy.
The Mauritius banking sector has been the recipient of a number of international accolades and awards over the past few years. This article features in the , a special focus on the Banking Sector in Africa, with an overview of the current trends and opportunities in the Sector. The inflation rate picked up to 6. The financial services sector has shown rapid growth in the last two decades and contributed 10. We, therefore, expect to lose some players in the short term, others alter their business models, but in the medium-to-long term continue to grow given the level of investment required on the continent in the decades to come.
Capacity building: Contribute to the development of skills and competences required for the financial service industry. The banking industry is characterised by the wide range of services provided. Global funds domiciled in Mauritius may also take advantage of the flexible listing rules of the Stock Exchange of Mauritius in order to list on one of the leading platforms in Africa. Guidance to investors and service providers to the requirements before applying for a Global Business Licence is provided in the. The authorities have intensified efforts to strengthen the country's crisis management framework and to reduce the costs of resolving troubled banks for the government. In order to move to the next stage in financial sector development, however, Mauritius needs to further diversify its financial sector.
However, their mandate for preserving macro stability is becoming increasingly challenging in the meantime. Future success will, therefore, depend on improving skills, infrastructure and institutions. The content of this article is intended to provide a general guide to the subject matter. Last Updated: Jun 04, 2018. While the financial sector is generally sound and profitable, the dominance of a few major players and the concentration of risks within a narrow banking sector pose certain systemic risks and inhibit competition and innovation.
Lucie Villa Vice President - Senior Analyst Sovereign Risk Group Moody's Investors Service, Inc. Moody's considers the banks' foreign-sourced deposits to be sensitive to potential disruptions in the off-shore sector that could result in a loss of confidence and could expose banks to refinancing risks. Mauritius's external position is also vulnerable to the financial centre's performance. As an important contributor to the economy, the financial services sector has succeeded in generating high value-added employment as well as contributing to government revenues and foreign exchange earnings. This high-level meeting provided a platform to address challenges impeding the regional financial sector from fully playing its role as a catalyst for growth and to support economic and social development objectives, both at the national and regional levels. The current regulatory framework has many strong elements, including reliance on solvency monitoring, prudent asset diversification, international accounting standards, and actuarial methods. Shifting coalitions are a feature of politics.
The president is head of state and the prime minister has full executive powers and heads the government. The gradual shift noted towards broader diversification of banking assets as well as the introduction of custodial and premium banking services are a nod in this direction. Mauritius is rapidly becoming an active player in the global Islamic finance industry. As for Foreign Exchange Earnings, as very few inputs are imported, net foreign exchange earnings are again substantial. Strengthening the role of, and opportunities for, women in the economy could significantly help since, despite relatively strong female educational attainment, the female participation rate in the labor market is low 32% lower than men in 2015 and the gender wage gap remains large at about 30% in the private sector. Future success will, therefore, depend on improving skills, infrastructure and institutions. Subsidiaries or branches of big-names are also unlikely to face issues given that they are expected to receive injections from the parent company in case of need.
Captive Insurance Following the enactment of the Captive Insurance 2015, the legislative framework has been set for the establishment and management of pure captive vehicles in Mauritius. While the financial sector is a source of vulnerability, Moody's views a systemic banking crisis as being unlikely, given factors such as the system's sound capital and liquidity buffers. In spite of the various shocks facing the international banking landscape over the recent years, the domestic banking sector has shown satisfactory performance as evidenced by the official figures available from the Financial Stability Report of the Bank of Mauritius of. The strategy for mitigating the potential risks facing the banking system in Mauritius requires a multifaceted approach. Therefore, new rules have been agreed on by finance ministers from around the world to stop companies from moving profits to low tax centres. Moody's considers the banks' foreign-sourced deposits to be sensitive to potential disruptions in the off-shore sector that could result in a loss of confidence and could expose banks to refinancing risks.
The basic financial sector infrastructure, such as payment, securities trading and settlement systems, is modern and efficient. Lending has grown in-line with the economy having averaged 81±0. Captive insurers will be regulated by the Financial Services Commission and can also be licensed as Global Business Companies Category I. Unlike in most developing countries, new and small firms do not face major constraints in accessing financial services and credit. Reflecting this is the fact loan book growth for the large banks has ground to a halt in 2016. Banking Sector Overview Over 20 banks operate in Mauritius and, in addition to traditional banking services, they offer a range of specialised services ranging from custodial services to cross-border activities.