Mauritius bank liquidities in sharp decrease
Official statistics published by the newspaper l'Express.mu reveal that the surplus of liquidities in banks went from Rs 6.8 billion (€170 million) last February to Rs 3.4 billion currently.
This drop would be linked to recent measures introduced by the Mauritius Central Bank to prevent an excess of liquidities in commercial institutions and encourage them to lend more to the private sector.
On February 25th 2011, the organisation increased the minimum amount of liquidities that banks must keep at the Mauritius Central Bank.
It is now set at seven per cent of total liquidities, added the news source.
To boost credit to companies, the bank has also recently stopped selling three and six-month treasury bonds, Reuters news agency reports.
The institution hopes that banks, deprived of this safe investment, will be forced to lend more to businesss if they want to generate profits.
This initiative seems to be working, according to figures released by L'Express.mu, as the amount of credit to the private sector has recently shown an increase of one per cent.