Rarely have two simultaneous objectives, coming from opposite sides of the decision chain, from the regulator on the one hand and from the regulatee on the other, meshed so well to trigger an important change in the banking landscape. The effects of the change will translate into more muscle for both the Bank of Mauritius and Barclays.
Barclays will undoubtedly emerge stronger from this restructuring, and the Bank will have more room for manoeuver to exercise an effective oversight of the system and reduce its financial stability concerns. But in spite of the clear and expressed support of the regulator, the road leading to Barclays restructuring its operations into a subsidiary was like an obstacle course.