Bonnie Qiu: “FX deposits remained stable despite Covid-19 crisis”

In spite of the crisis, the banking sector has remained resilient, states the CEO of HSBC and Chairperson of the Mauritius Bankers Association. For instance, as at end of March 2021, banks’ capital adequacy ratio stood at 18.7%, comfortably above the regulatory minimum 11.9%. Similarly, the quality of assets remains good with non-performing loan ratio standing at 5.0%. In the interview below, Bonnie Qiu also talks about the interconnectedness between the banking sector and global business and expresses confidence that Mauritius will soon be removed from the European union’s blacklist.


Perhaps better organised than during the 2008 economic crisis, in these times of turmoil, banks around the world have been able to coordinate their actions by adopting unconventional policies to prevent the collapse of the economy. With the Covid-19 crisis, have banks passed the litmus test?

The Covid-19 crisis has greatly reduced economic activity in many sectors globally, but it has also spurred new sectors like e-commerce and preventive pharma to emerge. The banking sector has showed its humane side by prioritising relief programmes for individuals and companies, in a number of economies around the world. The banking sector in Mauritius has remained resilient. As at end of March 2021 banks’ Capital Adequacy Ratio (CAR) stood at 18.7%, well above the regulatory minimum 11.9%, and the quality of assets remains good (the Non-Performing Loan ratio stood at 5.0%). The Global Business sector has also shown resilience, and as a result, banks’ FX liquidity has remained stable. As we work with Bank of Mauritius on the future of banking, we will start to explore new avenues of growth and alternative channels such the Central Bank Digital Currency (CBDC) and digital KYC.