Mauritius Bankers Association (MBA)

Formation and Evolution

  • Established: 1967 as an association of commercial banks authorised to conduct banking business in Mauritius.
  • Incorporated: 2001 as a non-profit public company limited by guarantee.

Main Objectives

  1. Protecting, developing, and representing the rights and interests of its members.
  2. Supporting member interests in relations with public or government bodies.
  3. Providing a platform to study issues and problems related to banking and finance.
  4. Promoting conditions conducive to competitive, profitable, and responsible banking and finance business.
  5. Encouraging the study of issues affecting the science of banking and finance.

Members

Comprises 10 commercial banks holding a Category 1 Banking Licence:

  1. Bank of Baroda
  2. Barclays Bank PLC
  3. First City Bank
  4. Habib Bank
  5. Hong Kong and Shanghai Banking Corporation Ltd.
  6. Indian Ocean International Bank Ltd
  7. Mauritius Commercial Bank Ltd
  8. Mauritius Posts and Co-operative Bank Ltd
  9. South East Asian Bank Ltd
  10. State Bank of Mauritius Ltd

Non-Bank Financial Intermediaries

Non-Bank Deposit-Taking Institutions

  • Licensed Companies: Fourteen companies licensed to carry on non-bank deposit-taking business in Mauritius.
  • Primary Activities: Twelve companies are engaged in leasing activities and mortgage financing.

Leasing Sector

  • Establishment: Subsidiaries of major banks, insurance companies, and conglomerates.
  • Purpose: Service customers of parent companies and offer a one-stop service for insurance and mortgage loan products
  • Market Outlook: Positive prospects with increasing demand for lease financing, especially among small and medium enterprises (SMEs).
  • Market Concentration: In 2002, the four largest leasing companies represented 82% of the total asset base of the sector, and generated 87% of total income and 88% of total profit before tax.

Financial Performance (2002-2003)

  • Total Assets: Increased by MUR 4,934 million (31.1%), from MUR 15,853 million in June 2002 to MUR 20,787 million in June 2003.
  • Capital and Reserves: Increased by MUR 553 million (19.4%), from MUR 2,850 million in June 2002 to MUR 3,403 million in June 2003.
  • Total Deposits: Increased significantly by MUR 5,283 million (104.8%), from MUR 5,043 million in June 2002 to MUR 10,326 million in June 2003.

Summary

The Mauritius Bankers Association (MBA) plays a pivotal role in the financial sector by representing and supporting the interests of its member banks. It facilitates the study of banking and finance issues and promotes a competitive and responsible banking environment. The non-bank financial intermediaries, particularly in the leasing sector, show robust growth and concentration, indicating a significant contribution to the financial services landscape in Mauritius. With stringent regulatory oversight and a strong emphasis on transparency and accountability, both banking and non-banking institutions in Mauritius are well-positioned to support the country’s economic growth and development.