Banking by nature depends on liquid funds and deposits to create assets which are less liquid, and if assured access to liquidity under a condition of market stress is not planned as part of the liquidity management strategy, then banks would remain vulnerable to illiquidity shocks in the markets.
I believe that SMEs are critical for our future economic prosperity given that it has been placed on the national agenda by the Government. Indeed, the Government of Mauritius has endeavoured to bolster the SME sector by providing various incentives, including industrial space and special grants amongst other measures. Some of the former SMEs are now big players in the Mauritian corporate landscape.