By Nishta Jhurree. December 2021.
The banking sector of Mauritius remains profitable. Profitability ratios continued to decline in Q4 2020 but picked up in Q1 2021. Despite facing strong headwinds during the pandemic, the banking sector has remained resilient.
Global regulators have encouraged banks in their jurisdictions to support the local economy through their buffers. The Bank of Mauritius (BoM) has introduced several support measures since last year to households and businesses. With the Real Estate sector now representing roughly 5..5% of our country’s Gross Value Added (GVA), the Banks have channelled their funds into loans, followed by placements.
Incentives also include one year moratorium on abroad and investments in domestic and household loans at commercial banks, extending foreign assets.
line of credit from US$ 300M to US$ 500M. There has also been the timely intervention of the BoM to review downward the key repo rate to 1.85% and low interest rates environment remains supportive for the Real Estate sector.
