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n African Journal of Business and Economic Research - Financial markets in Mauritius : an assessment of their strengths and weaknesses

Volume 2, Issue 2_3
  • ISSN : 1750-4554
  • E-ISSN: 1750-4562

Abstract

This paper has performed a critical analysis of the strengths and weaknesses of the financial sector in Mauritius. Though overall the system is adequately capitalized, profitable, and liquid and has recorded sound growth rates, it is imperative to continue strengthening banking supervision and encouraging banks and other financial institutions to strengthen their internal audit and control systems. This is in light of some of the financial scandals, which happened, partly due to inadequate or weak internal control systems. The financial sector must also further encourage the developments of alternatives to bank lending to reduce concentration of risks, contain market concentration and promote healthy competition. Banks and other financial institutions should strengthen provisioning levels so as to enhance the resilience of the system. The major financial players should undertake more international risk diversification. The government must reduce its implicit contingent liability in the banking system by reducing the budget deficit. The process of financial liberalization should be properly sequenced. Political tampering with credit allocation is to be avoided. It is also crucial to ensure good corporate governance practices and a proper code of ethics observed by bank managers, directors, executives, and at all levels in the financial sector.

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/content/aa_ajber/2/2_3/EJC10423
2007-01-01
2019-08-26

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