In fact, more than 60 per cent of domestic banking assets are held by these banks. Moreover, none of the parents of the foreign banks having a presence in Mauritius have had to avail of support from their respective governments for shoring up their capital in their home jurisdiction. None of them have become wards of state.
The dangers posed by the crisis to access to finances by the private sector can be summarized into refinancing risk, credit risk and regulatory risk. Refinancing risk The global liquidity contraction will likely affect the cost and availability of funding for African economies.