I have on other occasions argued that, in order to maintain this confidence, the mortgage banks should take a cautious approach and not go too near the statutory limits. The more resilient the mortgage banks are to losses, the greater is the probability that they can meet their obligations to investors.
The Guidelines, as I said in my address to the private sector in November last, are not obituaries but principles that should be adhered to by the Boards of Directors of all banks, including the Board of Directors of the Bank of Mauritius. The quiet and sybaritic lives of Board members are over.