Currently, the bank has three branches.
MCB has a dominating 50 percent overall local market share. It has the largest market capitalisation on the Stock Exchange of Mauritius at Rs The bank also has over 40 percent market share in respect of credit to the economy and local currency deposits. The MCB has had a tradition of being a leader adapting to changes and innovating to satisfy customer needs. Our Vision, Mission and Corporate values are aligned to maintain this stance. We fully understand that our future success will depend on our ability to deliver a comprehensive range of services quicker, cheaper and in a more efficient manner to our increasingly sophisticated and global customers.
Towards that end, the Bank is investing heavily in human and technological resources. Other axes of our competitive strategy are further product differentiation and regional diversification. Given the limited potential for growing market shares domestically, particularly in a context of subdued economic expansion, the Group, while consolidating its market presence in domestic banking services, has embarked on a two-pronged diversification programme.
One arm of the diversification strategy involves furthering the extension of domestic activities into the provision of non-banking financial services from the existing base. Our goal is to serve as a single window offering a full-fledged package of financial services. We hope in the process to reinforce customer loyalty. The other arm of the diversification strategy involves strengthening and deepening our presence in foreign markets, which offer interesting investment opportunities as may be gauged from the growing success of our foreign subsidiaries thus far.
Basically, the gist of our competitive strategy is to substantially increase the contribution of subsidiaries and associated companies to the Group's profit. Ultimately, we strongly believe that the successful entrenchment of our strategies will lead to the reinforcement of a virtuous circle within our Group thereby providing higher quality service to clients while fostering greater staff satisfaction and yielding additional shareholder value.
The key, of course, lies in striking the proper balance and the MCB already has its year track record as testimony thereof. Whilst adopting a more cautious approach in its operations on account of degenerating economic conditions, the MCB has pursued several business development initiatives at different levels during the last financial year.
At another level, in line with its strategy to diversify its revenue streams, the MCB has recently concluded a joint venture with a local insurance company for the provision of credit insurance services to customers wishing to cover for risk of default by debtors.
Mauritius has undertaken significant policy and legal reforms in order to strengthen its financial sector. As a result of reforms, there are two regulatory bodies: The BOM is in charge of regulating, licensing, and supervising the banking sub-sector. The FSC is in charge of regulating, licensing and supervising non-bank financial institutions. In order to consolidate the reputation of Mauritius as an international financial centre, a new legal framework regarding money laundering and terrorism financing has been set up through the adoption of the Financial Intelligence and Anti-Money-Laundering FIAML Act and its Regulations , the Anti-Money-Laundering Miscellaneous Provisions Act , the Prevention of Corruption Act , and the Prevention of Terrorism Act The BA eliminated the sharp distinction between domestic banks and offshore banks previously Category 1 and Category 2 banks, respectively , by providing for banking business to be conducted under a single banking licence regime effective June Foreign banks are allowed to establish either as wholly-owned subsidiaries or branches, and to form joint-ventures with local banks.
If the application for the banking licence is made either singly or in joint-venture by a branch incorporated abroad, the bank must be a "reputable international bank" that has operated as a bank for at least 5 years, and subject to consolidated supervision by competent foreign regulatory authorities. The bank started business with an authorised capital of , pounds sterling, around , piastres, in premises situated at rue de Paris, subsequently rue Desforges, now Sir Seewoosagur Street.
The British government renewed the charter every twenty years until 18 August when the Bank became a limited liability company. MCB encountered numerous difficulties in its first hundred years. MCB opened its first branch in Curepipe , in the centre of the island, in It did not open another branch until after World War II.
In , Lloyds Bank became a shareholder. In , MCB became a limited liability company. At this point MCB became the first bank to set up branches in rural locations: Mahébourg in , Flacq in , Triolet in , and Goodlands in Mauritius achieved its independence in MCB began its international expansion in when it opened representative offices in Paris and Antananarivo , Madagascar.
Currently, the bank has three branches. Then in MCB converted its representative office in Paris to a branch. Since its regional expansion, MCB operated as both a licensed bank and a holding company. In , MCB embarked on a reorganization that sought to separate the banking and non-banking operations and raise capital in order to position itself for future growth.
The restructure was as follows: At the end of the reorganization, MCB remained a commercial bank with no subsidiaries while MCB Group's structure operated under three clusters, i. On 14 February , known afterwards as MCB's "Black Friday," the Mauritius Commercial Bank announced in a press communiqué that it had discovered a large scale fraud which had resulted in the misappropriation of over Rs.
The fraud was alleged to have been committed by one of the bank's senior managers, Robert Lesage. The most important ones involved were:. Sea Rock Paradise Ltd Pit Ho Wong Ching Hwai. Geerjanand Khoosman and Sudarshan Bhadain shareholders in The latter had claimed that without his knowledge shares in Quartet were put in his name while he was a student and to which he never consented.
Bhardooaz Babeedin and Deochand Nundloll, shareholders. In , Donald Ha Yeung joins in. Charged with embezzlement and money laundering, Lesage involved two top managers of the MCB. Attempts were made to challenge the immunity since it had not been granted or confirmed by the Director of Public Prosecution. Money was credited to accounts of ten companies and five persons including Appassamy, the alleged master swindler.
They, as well as MCB top managers, were provisionally charged. This charge was later struck out on a technicality. Philippe Forget, also a major shareholder of the prominent newspaper L'Express Mauritius , was arrested and released on bail.
Charges against Forget were eventually changed and then struck out.
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