2  BIS Review 20/2005  The External sector The contraction in activity in the productive sectors also has implications for the external account of the country. This is particularly worrying to the extent that the fall-off in production is being accompanied by a significant rise in retained imports from the region.
However, to be productive, those rules and principles have to be adapted to the ultimate objective sought by bank regulation to strengthen the domestic banking system. They should not merely reflect decisions taken in other contexts for other countries and in different market circumstances, or not have direct bearing on the realities of banking practices in Mauritius.