Banking Sector Demonstrates Strong Resilience and Solvency in Q2 2023

The Mauritian banking sector has showcased remarkable resilience, strength, and robustness, as evidenced by high solvency and liquidity figures in the second quarter of 2023.

At the end of June 2023, the sector’s capital adequacy ratio stood at 19.9%, significantly surpassing the minimum regulatory requirements set by the Bank of Mauritius.

This substantial buffer provides protection against potential shocks, according to Harvesh Seegolam, the central bank governor, following the latest Monetary Policy Committee meeting.

Seegolam said Mauritian banks held a substantial amount of unencumbered high-quality liquid assets.

Both the global and foreign currency Liquidity Coverage Ratios (LCR) were recorded at 257.1% and 191.9%, well above the 100% safety threshold.

“Mauritian banks are sufficiently resilient to withstand liquidity pressures, whether domestically or internationally driven, for a 30-day period,” he said.

While vulnerabilities in the banking system decreased in the first half of 2023 compared to 2022, the BoM Governor noted potential risks to financial stability due to global developments.

Source: l’Express