Banks In Mauritius Research Articles

Supervision and Prudential Regime of the Banking Sector of Mauritius: An Evaluative Review of Statutes

Abstract This article provides an evaluative review of the supervision and prudential regime of the banking sector of Mauritius. It assesses the normative framework that provides for the basis of bank supervision in Mauritius using relevant international standards as applicable. It can be observed that the banking sector of Mauritius is quite advanced and compliant with international standards though there is room for improvement. The Bank of Mauritius has been proactive in ensuring that the supervision and prudential regime meets the exigencies of the standards of an international financial centre which Mauritius aspires to be. The aim of this evaluative review is to provide an overview of bank supervision and the prudential regime of Mauritius to the academic and research community since there is a dearth of literature on this aspect coming from Mauritius. Additionally, there are certain lessons that can be learnt from the Mauritian experience regarding bank supervision especially for African countries.

Service quality dimensions as predictors of customer satisfaction and loyalty in the banking industry: moderating effects of gender

PurposeThe link between service quality and customer satisfaction has been well established; however, there are strong reasons to believe that gender moderates the effects of service quality dimensions on customer satisfaction. This study aims to uncover gender-based heterogeneity pertaining to the link between service quality dimensions and customer satisfaction in the context of banking services.Design/methodology/approachThis study adopted a survey design. Data is collected from 282 customers of banks in Mauritius. Because of the prediction-oriented aim of the present study, the partial least squares-structural equation modeling technique is used to test a set of relevant hypotheses.FindingsThe results provide mixed findings and the moderating effect of gender is found to be statistically significant for one service quality dimension but not for the other two. The permutation and partial least squares-multigroup analysis tests both support the hypothesis that gender moderates the relationship between environment quality and customer satisfaction.Research limitations/implicationsOnly customer satisfaction has been included as a mediator of service quality and customer loyalty link. Previous studies have identified other relevant constructs, such as image and the perceived value, as mediators. Future studies could consider including these constructs when testing gender’s moderating effects. Finally, given the significant moderating effect of gender, which suggests that the satisfaction of male customers depends to a larger extent on environmental quality, there is a need to further explore the specific expectations of male customers with this particular component of bank services.Practical implicationsThe results show that male and female customers react differently to quality stimuli in the context of bank services has important managerial implications. It is highly recommended that banks develop differential strategies for both male and female customers.Originality/valueThe primary contribution of this study focuses on exploring the moderating effect of gender on the relationships between service quality dimensions and customer satisfaction among bank customers.

A GQL-based inference in non-stationary BINMA(1) time series

This paper introduces a non-stationary bivariate integer-valued moving average of first-order (BINMA(1)) model with corresponding negative binomial innovations under different levels of over-dispersion that are pairwise unrelated. In the proposed BINMA(1), the interrelation between the series is induced by the relation of the current observation with the previous-lagged innovation of the other series, while the non-stationarity is captured through the time-variant covariate specification. Under such condition, the likelihood construction is cumbersome to formulate. Thus, a generalized quasi-likelihood equation based on an exact auto-covariance specification via multivariate thinning structures is proposed to estimate the regression, over-dispersion and dependence effects, and its performance and efficiency measures are compared with other common established techniques: generalized least squares and generalized method of moment based on simulated data from the proposed model under different scenarios of over-dispersion and serial coefficients. The model is further applied to analyze the intraday transactions of two major banks in Mauritius.

A Customer’s Perspective of Green Banking: A Case Study of Commercial Banks in Mauritius

The objective of this research is to gauge the level of customers’ awareness on Green Banking products and services by commercial banks in Mauritius. Additionally, this research investigates the opinion of customers as regards to Green Banking concept and evaluates the influence of the Green Banking initiatives adopted internationally on Mauritian customers. The primary data was collected through a sample of 200 questionnaires from customers and using SPSS software to generate the descriptive results. From the mean analysis obtained for influence of Green Banking products and services on bank customers, it can be noticed that advertising for e-statements, internet banking, and mobile banking amongst others was not influenced greatly by respondents. However, the majority of the respondents rated positively to the efficiency of green projects/CSR that is implemented by green banks in Mauritius. It can also be noted that most of the respondents make use of e-statements with a mean score of 3.53 followed by the use of internet banking and mobile banking with higher mean scores.

A Critical Assessment of Basel III and its Implications on the Mauritian Banking Sector

ABSTRACTThis paper probes into the application of Basel III in Mauritius. Findings show that although Mauritian banks are well-capitalized and carry excess liquidity, they will have to restructure their balance sheets by incorporating highly liquid assets such as government securities. While Basel III will foster greater financial stability, this will translate into lower supply of credit, higher cost of credit and lower returns with potential strains on SME lending. Similarly, Bank of Mauritius’s ability to control credit growth will be hindered because banks’ existing leverage ratios are already higher than the stipulated minimum leverage ratio of 3%. To harness the full benefits of the reforms, additional measures tailored to the specificities of the Mauritian economy will be needed. Other challenges prevail like establishing robust data management, risk methodologies, reporting systems and IT architecture as well as identifying the timing and the size of the Countercyclical Capital Buffer. Local banks anticipate Basel IV in the coming years as a refined tool.

Central Bank Independence and Inflation: Evidence from Mauritius

The present study analyses the relationship between central bank independence and the rate of inflation for Mauritius for the period 1975–2010 using a dynamic time series analysis. Furthermore, it also presents the construction of a new CBI index which is used to assess the degree of independence enjoyed by the Bank of Mauritius over the period of study. Using an ARDL approach, the findings reveal an inverse and significant relationship between CBI and inflation in the long run. However, no significant relationship could be found in the short run.

Assessing Service Quality In The Banking Sector in Mauritius Using Principal Component Analysis

Service quality in the banking sector is an important issue in an era where financial crisis is dominating the world economy. This paper assesses customer’s expectations and perceptions of service quality in the banking sector in Mauritius through the use of the Servqual questionnaire which was circulated among the customers of two major banks in Mauritius which hold more than 2/3 of the market share in the Mauritian Banking Business. The customers were assessed on the tangibility, reliability, responsiveness, assurance and empathy via the Principal component analysis (PCA). From the analysis, it was clear that these major banks should re-design their strategies linked to staff training, employee involvement and rewarding system.

Consumer Buyer Behaviour: The Role of Internet Banking in Mauritius

The present paper reports on key findings from a study of the Mauritian banking sector of the influence of internet banking. It also explores the expectations of users of internet banking services offered by local banks in Mauritius and issues influencing the adoption of internet banking. Two semi-structured in-depth interviews were held with two top executives, and a survey-questionnaire using a representative sample of 300 participants from round the island. This exercise was carried out on Saturday mornings over a period of 7 weeks. Saturday mornings were chosen as it is the day of high utilization of ATMs in all urban and rural areas, and when most offices are closed in Mauritius. Of all the questionnaires, collected, 240 were usable and were compiled and grouped in categories. The key findings were: confidentiality and security when transacting online, convenience and accessibility for doing banking on a round – the – clock, ease of navigation of banks’ website to complete the transactions, factors that constitute barriers to its adoption, the high cost of internet communications and computer equipment, the accessibility and downtime of the internet which act as hurdles for Internet Banking acceptance and limitations of the study is discussed.

Factors influencing the adoption of internet banking: a case study of commercial banks in Mauritius

Purpose – The purpose of this paper is to investigate the factors influencing the adoption of internet banking services in Mauritius. Drawing from the technology acceptance model, theory of reasoned action, theory of planned behaviour and the extensive literature on demographic profiling of internet banking users, trust and security aspects associated with adoption rate of internet banking, this paper combines various predetermined constructs in one model. The different constructs such as perceived ease of use, perceived usefulness, subjective norms, attitudes, behavioural intentions, security and trust aspects, the level of awareness on internet banking services and demographic variables such as age, income, gender and education into one integrated framework. Hence, the paper will deepen understanding of the specific factors underpinning the adoption of internet banking in Mauritius. Design/methodology/approach – This paper reports upon the empirical findings of the customer survey on the various factors...

The Role of Small and Medium Enterprises and Bank Profitability - A Mauritian Perspective

This paper empirically investigates the role that Small and Medium Enterprises (SMEs) play in influencing the profitability of Banks in Mauritius. Making use of panel data spanning from 2001 to 2008, the empirical findings reveal that SMES do not contribute to bank profitability in Mauritius. Banks are more concerned about large corporates as SME financing is seen to be highly risky as the latter do not have sufficient collateral to provide and are therefore constrained in terms of bank financing. The ideal source of finance is through leasing companies. However, the most important determinant of bank profitability is Credit risk.

Efficiency and Productivity Change of Banks: Evidence from a Small Island Development State

This paper employs a nonparametric approach to estimate the efficiency and productivity of the Mauritian banking sector during 2001-2006. The measurement of efficiency is done using the Data Envelopment Analysis (DEA). Productivity growth is decomposed into technical efficiency and technological change using the Malmquist indices. Using labour, fixed assets and loanable funds as inputs and total loans and fee based income as outputs in the analysis, it is observed that the mean efficiency score of banks in Mauritius when compared to other countries is lower. The Malmquist Total Factor Productivity results obtained indicate that annual productivity growth averaged 4.9% across all commercial banks and was largely attributable to technological progress. The results have important implications for bank managers, policy makers, bank regulators and other stakeholders of the Mauritian economy. It is believed that there is considerable scope for efficiency improvements in this sector, particularly for Mauritian Bank to consolidate and enhance their competiveness in the region.