Image Image Image Image Image Image Image Image Image Image Image Image

AfricaMoney | June 22, 2017

Scroll to top

Top

No Comments

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 1,851 applications to the tune of Rs 2.7 billion, representing a 50.0% share in SME funding, while the latter accepted 1,029 applications for an amount of Rs 972.5 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 30th September 2015.

Total loan applications across all banks amounted to Rs 6.9 billion, of which 196 applicants were rejected and 95.3% 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 21.8% of applications received during the period under review.

The MCB was the preferred bank for SMEs, which received 1,886 applications for an amount of Rs 3.6 billion and accepted applications to the tune of Rs 2.7 billion, representing a 50.0% share in SME funding.

SBM ranked second in the list with 1,129 application received for an amount of Rs 1.2 billion, of which Rs 972.5 million was approved.

Other banks, namely the Bank of Baroda and The Hongkong and Shanghai Banking Corporation Limited, received requests to sanction Rs 162.7 million and Rs 203.1 million respectively as loan applications, and all the loan applications received were approved by both banks.

The amount outstanding as at end-September  2015 stood at Rs 1.9 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 2.1 billion, followed by finance lease facilities at Rs 278.6 million.

Finally, the Mauritian central bank also released its monthly bulletin indicating that, on the international economic front, economic growth in the US and UK continued to be relatively more robust than in the euro zone while advanced economies’ central banks maintained their accommodative policy stance.

In the UK, policymakers remained upbeat about UK growth prospects despite downside risks to the global economic environment. At its meeting on 9 September 2015, the Bank of England (BoE) Monetary Policy Committee maintained the Bank Rate at 0.5 per cent and its asset purchase programme of £375 billion.

The BoE Governor Mark Carney said that there was a chance that interest rates could be increased in early 2016 if the UK growth remained robust and inflation picked up.

In September 2015, currency markets were mainly influenced by changes in global risk appetite, in particular with respect to Chinese economic data and volatile

Submit a Comment

Directory powered by Business Directory Plugin