The Impact of the Global Financial Crisis on the Mauritian Financial Services Sector
International Research Symposium in Service Management
ISSN 1694-0938
The Impact of the Global Financial Crisis on the Mauritian Financial Services Sector
Aleesha Mohamudally-Boolaky University of Technology, Mauritius
La Tour Koenig, Pointe aux Sables E-mail: aboolaky@umail.utm.ac.mu
Indranarain Ramlall University of Technology, Mauritius
La Tour Koenig, Pointe aux Sables E-mail: ramindra0001@yahoo.co.uk
Abstract
Le Meridien Hotel, Mauritius, 24-27 August 2010
1
International Research Symposium in Service Management
ISSN 1694-0938
Considered as the worst crisis since that of the Great Depression in 1929, the US Subprime crisis trailed behind major changes in the sphere of finance. Indeed, as the crisis unfolded itself, directly or indirectly, it generated heightened risk aversion among traders, bailout of bruised banks by the government, massive injections of fiscal stimulus packages and austerity measures in light of recent debt crisis. Ironically, Islamic financing, which was so far been considered to be practically immune to the crisis got a blow in December 2009 on the back of debt problems in Dubai. Overall, the crisis has pushed both academicians and practitioners to think out of the conventional way, let alone revision of major economic theories such as benefits of a monetary union. The objective of this paper is geared towards analyzing the impact of the crisis onto the Mauritian financial services sector of which the banking industry is the most important. To capture the effects related to the characteristics specific to the different banks, a questionnaire has been dispatched to all banks in Mauritius on questions related to the crisis. Despite the fact that the response rate has been around 38%, nonetheless, this paper does provide some interesting insights as to how banks responded to the crisis. Keywords: US Subprime crisis, Financial Services, Mauritius JEL Classification Codes: G15, G20, G21
Le Meridien Hotel,
ISSN 1694-0938
The Impact of the Global Financial Crisis on the Mauritian Financial Services Sector
Aleesha Mohamudally-Boolaky University of Technology, Mauritius
La Tour Koenig, Pointe aux Sables E-mail: aboolaky@umail.utm.ac.mu
Indranarain Ramlall University of Technology, Mauritius
La Tour Koenig, Pointe aux Sables E-mail: ramindra0001@yahoo.co.uk
Abstract
Le Meridien Hotel, Mauritius, 24-27 August 2010
1
International Research Symposium in Service Management
ISSN 1694-0938
Considered as the worst crisis since that of the Great Depression in 1929, the US Subprime crisis trailed behind major changes in the sphere of finance. Indeed, as the crisis unfolded itself, directly or indirectly, it generated heightened risk aversion among traders, bailout of bruised banks by the government, massive injections of fiscal stimulus packages and austerity measures in light of recent debt crisis. Ironically, Islamic financing, which was so far been considered to be practically immune to the crisis got a blow in December 2009 on the back of debt problems in Dubai. Overall, the crisis has pushed both academicians and practitioners to think out of the conventional way, let alone revision of major economic theories such as benefits of a monetary union. The objective of this paper is geared towards analyzing the impact of the crisis onto the Mauritian financial services sector of which the banking industry is the most important. To capture the effects related to the characteristics specific to the different banks, a questionnaire has been dispatched to all banks in Mauritius on questions related to the crisis. Despite the fact that the response rate has been around 38%, nonetheless, this paper does provide some interesting insights as to how banks responded to the crisis. Keywords: US Subprime crisis, Financial Services, Mauritius JEL Classification Codes: G15, G20, G21
Le Meridien Hotel,
References: Bank of Mauritius Financial Stability Report, Various Issues. Chan-Lau J. A, (2008), “The globalization of Finance and its Implications for Financial stability,” International Journal of Banking, Accounting and Finance, Vol 1., pp.3-29. Yilmaz K.(2008), Global Financial crisis and the volatility spillovers across stock markets,” Research Note 0801, Economic Research Forum, Tusiad University.