Mauritius : Financial Sector Assessment

This Financial Sector Assessment (FSA) is the joint IMF-World Bank work, based on the context of the Financial Sector Assessment Program (FSAP), intended to identify strengths, and vulnerabilities, as well as development needs of the financial sector. The report thus summarizes main findings, and policy recommendations as follows. Mauritius has been remarkably successful in achieving rapid growth, and substantial diversification of a formerly mono-agricultural economy. However, maintaining the past high rates of growth, and employment will pose a major challenge. The trade preferences on which two of the pillars of the economy are founded are being eroded, forcing the sugar and textile industries, to significantly improve their competitiveness, or lose market share to larger, lower-cost producers. In partnership with the private sector, the government is taking decisive measures to build a knowledge economy based on higher value-added services, notably in information and communication technologies. They have also adopted programs to modernize, and improve competitiveness in the sugar and textile industries, and, are investing heavily in education, in order to realign the labor force with the requirements of the new engines of growth. Mauritius has a relatively large and well-developed domestic financial system, and a growing offshore sector, however, the country needs to further diversify its financial sector, namely within the banking system. This includes continuing the strengthening of banking supervision, fostering the development of alternatives to bank lending to reduce portfolio concentrations, and increase competition. Additionally, there is the need to encourage sound international risk diversification, by strengthening provisioning levels, so as to enhance the resilience of the system to a downturn in economic activity, and, by reducing the government's implicit contingent liability in the banking system.

Bibliographic Details

Main Author:	World Bank
Language:	English en_US
Published:	Washington, DC 2003-08
Subjects:	ACCOUNTING, ANNUITIES, ASSET DIVERSIFICATION, ASSET VALUE, AUDITING, AUTHORITY, BANK EXPOSURE, BANK LENDING, BANK OF MAURITIUS, BANK SOLVENCY, BANKING REGULATION, BANKING SECTOR, BANKING SUPERVISION, BANKING SYSTEM, BANKS, BRANCH BANKING, CAPITAL ADEQUACY, CAPITAL BASE, CAPITAL FLOWS, CAPITAL MARKETS, CAPITAL REQUIREMENTS, CAPITALIZATION, CIVIL SERVICE, COMPETITIVENESS, CONSOLIDATED SUPERVISION, CONSOLIDATION, CONSUMER PROTECTION, CONTINGENT LIABILITY, CONTRACTUAL SAVINGS, CONTRACTUAL SAVINGS INSTITUTIONS, CORPORATE GOVERNANCE, CORPORATE INSOLVENCY, CORRUPTION, COVERAGE, CREDIT RISK, DEPOSIT INSURANCE, DEPOSITORS, DEPOSITS, DISCLOSURE, ECONOMIC ACTIVITY, ECONOMIC DEVELOPMENT, ELECTRONIC FUNDS, ELECTRONIC FUNDS TRANSFERS, EMERGING MARKETS, EMPLOYMENT, ENACTMENT, FINANCIAL INFORMATION, FINANCIAL INSTITUTIONS, FINANCIAL RATIOS, FINANCIAL REPORTING, FINANCIAL SECTOR, FINANCIAL SERVICES, FINANCIAL SYSTEM, FISCAL, FISCAL DEFICITS, FISCAL YEAR, FOREIGN BANKS, FOREIGN EXCHANGE, FOREIGN EXCHANGE MARKETS, FRAUD, GOVERNMENT POLICY, GOVERNMENT SECURITIES, HOUSING, HOUSING FINANCE, INCOME LEVELS, INSOLVENT, INSOLVENT BANKS, INSPECTIONS, INSTITUTIONAL FRAMEWORK, INSURANCE COMPANIES, INSURANCE INDUSTRY, INSURERS, INTEGRATED REGULATION, INTEREST INCOME, INTEREST RATES, INTERNAL AUDIT, INTERNAL CONTROLS, INTERNATIONAL ACCOUNTING STANDARDS, LABOR FORCE, LABOR MARKET, LEGAL FRAMEWORK, LEGISLATION, LIFE INSURANCE, LIFE INSURANCE COMPANIES, LIQUID ASSETS, LIQUIDATION, LIQUIDITY, MACROECONOMIC STABILITY, NARROW BANKING, NET INTEREST MARGIN, NONPERFORMING LOANS, OPERATING COSTS, OPERATIONAL RISK, PAYMENT SYSTEMS, PENSION FUNDS, PENSIONS, PORTFOLIO DIVERSIFICATION, PORTFOLIOS, PROBLEM BANKS, PRODUCERS, PROFITABILITY, PROGRAMS, PRUDENTIAL REQUIREMENTS, PUBLIC DEBT, REGULATORY AUTHORITY, REGULATORY FRAMEWORK, REGULATORY REGIMES, REINVESTMENT RISK, RETIREMENT, RETURN ON ASSETS, RETURN ON EQUITY, RISK DIVERSIFICATION, RISK MANAGEMENT, SAVINGS, SECURITIES, SECURITIES TRADING, SETTLEMENT SYSTEMS, STOCK MARKETS, SUBSIDIARIES, SYSTEMIC RISK, TAX INCENTIVES, TAX TREATMENT, TECHNICAL ASSISTANCE, TIME DEPOSITS, UNEMPLOYMENT, VENTURE CAPITAL, WAGES FINANCIAL SYSTEMS, ASSESSMENTS, BANK-FUND COOPERATION, DIVERSIFICATION, SUGAR INDUSTRY, TEXTILES, PRICE STRUCTURES, PRIVATE SECTOR DEVELOPMENT, PUBLIC-PRIVATE PARTNERSHIPS, KNOWLEDGE BASED SYSTEMS, SERVICES DELIVERY, INFORMATION TECHNOLOGY, COMMUNICATION TECHNOLOGY, EDUCATION SECTOR, LABOR DEMAND, BANKING SYSTEMS, BANK SUPERVISION, GOVERNMENT LIABILITY,
Online Access:	http://documents.worldbank.org/curated/en/2003/08/2506938/mauritius-financial-sector-assessment https://hdl.handle.net/10986/14340
Tags:	Add Tag No Tags, Be the first to tag this record!