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AfricaMoney | October 16, 2017

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MCB & SBM continue to be the major Mauritian banks funding SME growth

MCB & SBM continue to be the major Mauritian banks funding SME growth

MCB & SBM were the banks favoured by Small and Medium Enterprises in Mauritius, with the former accepting 1,829 applications to the tune of Rs 2.6 billion, representing a 49.2% share in SME funding, while the latter accepted 1,046 applications for an amount of Rs 964.4 million.

The Mauritius Commercial Bank (MCB) captured the highest share among Mauritian SMEs in terms of providing credit facilities under the SME financing scheme, according to a report released by the Bank of Mauritius for the period 1st December 2011 to 31th August 2015.

Total loan applications across all banks amounted to Rs 6.7 billion, of which 194 applicants were rejected and 95.2% of applications were sanctioned for an amount of Rs 5.3 billion.

Incidentally, the Mauritius Post and Cooperative Bank (MPCB) rejected the maximum applications, with the 54 applicants rejected representing 22.0% of applications received during the period under review.

The MCB was the preferred bank for SMEs, which received 1,863 applications for an amount of Rs 3.5 billion and accepted applications to the tune of Rs 2.6 billion, representing a 49.2% share in SME funding.

SBM ranked second in the list with 1,093 application received for an amount of Rs 1.2 billion, of which Rs 964..3 million was approved.

Other banks, namely the Bank of Baroda and The Hongkong and Shanghai Banking Corporation Limited, received requests to sanction Rs 160.4 million and Rs 199.8 million respectively as loan applications, and all the loan applications received were approved by both banks.

The amount outstanding as at end-August 2015 stood at Rs 1.8 billion and MCB, SBM and Barclays recorded the largest amount of outstanding loans from SMEs.

On the breakup of facilities in terms of nature of financial assistance, loans comprised the bulk of all sanctioned facilities at Rs 2.3 billion, overdrafts came next at Rs 2.0 billion, followed by finance lease facilities at Rs 275.4 million.

Finally,the Mauritian central bank also released its monthly bulletin indicating that, on the international economic front, US and UK economy maintained their growth

momentum while the euro zone performed moderately. The European Central Bank (ECB) reaffirmed the need to fully implement its stimulus program me to bring inflation back to its target. In the UK, the Bank of England (BoE) revised its 2015 growth forecast up to 2.8%, but lowered its near-term inflation outlook substantially due to low energy prices and the relative strength of the Pound sterling.

As for the currency markets were mainly influenced by The People Bank of China’s surprise devaluation of the Renminbi in the midst of Chinese economic slowdown added uncertainty to the timing of the Federal Reserve’s long awaited increase in interest rates and raised fears of “currency wars”.

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