Impact of COVID-19 in Mauritius Banking Sector

The impact of COVID-19 in the Mauritius Banking
sector

Abstract
The pandemic affects the entire business in opposite manner whether it is retail, bank and hospitality industry. In the same
way, the present research topic also helps to examine the impact of Covid-19 upon the business performance of banks within
Mauritius. Through the secondary research, scholar identified that the overall working environment is negative impacted such that
decrease in productivity, quality of work and lose customer confidence. On the other side, most of the branches were shut down during
lockdown because if financial crisis and this in turn affect the employment as well. The entire research is based upon quantitative in
which both primary and secondary data collection methods chosen that helps to generate valid outcome. Such that 100 managers were
chosen from the Mauritius banking industry in order to examine their views with regards to chosen topic. Through findings it is
analyzed more than 50% of selected participants are strongly agreed that there is a drastic change in the working environment and this
in turn causes direct impact upon work-life balance of employees too. Also, to minimize such banks also uses many strategies and
tries to comply with advance technology in order to improve the impact due to Covid-19.

Acknowledgment
I would like to thank University who provide me an opportunity to complete the dissertation pertaining to this topic.
I would also share my gratitude towards my teachers who always ready to solve my query and provide right direction that helps me to
complete the project.
Next, I thank my parents who support me economically and non-economically which in turn assist me to complete the project.
Last but not the least I thanks my friends who are always ready to help me in any way and without their support I am not able to
complete the same.

Table of Contents
CHAPTER 1: INTRODUCTION................................................................................................................................................................7
1.1 Introduction........................................................................................................................................................................................7
1.2 Background of the study....................................................................................................................................................................8
1.3 Problem Definition............................................................................................................................................................................8
1.4 Aim and Objectives...........................................................................................................................................................................9
1.5 Research Questions............................................................................................................................................................................9
1.6 Significance of the study.................................................................................................................................................................12
1.8 Proposed hypotheses........................................................................................................................................................................13
1.9 Outline of chapter............................................................................................................................................................................13
1.10 Conclusion.....................................................................................................................................................................................15
CHAPTER 2: LITERATURE REVIEW...................................................................................................................................................16
2.1 Introduction......................................................................................................................................................................................16
2.2 Trend of Mauritius Bank.................................................................................................................................................................16
2.3 How COVID- 19 influence the banking sector of Mauritius..........................................................................................................18
2.4 Challenges face by the Mauritius banking sector while minimize the negative impact of COVID – 19........................................20
2.5 Conclusion.......................................................................................................................................................................................22

CHAPTER 3: RESEARCH METHODOLOGY.......................................................................................................................................24
3.1 Introduction......................................................................................................................................................................................24
3.2 Research Philosophy........................................................................................................................................................................24
3.3 Research strategy.............................................................................................................................................................................24
3.4 Research methods............................................................................................................................................................................25
3.5 Research Objectives.........................................................................................................................................................................25
3.6 Research Questions..........................................................................................................................................................................25
3.7 Target population.............................................................................................................................................................................26
3.8 Sample frame and sample strategy..................................................................................................................................................26
3.9 Design of instrument........................................................................................................................................................................27
3.10 Pilot testing....................................................................................................................................................................................27
3.11 Validity and Reliability Test..........................................................................................................................................................27
3.12 Proposed Hypotheses.....................................................................................................................................................................28
3.13 Proposed Tests...............................................................................................................................................................................28
3.14 Conclusion.....................................................................................................................................................................................28
CHAPTER 4: DATA ANALYSIS............................................................................................................................................................29
CHAPTER 5: DISCUSSION....................................................................................................................................................................66
5.1 Introduction......................................................................................................................................................................................66

5.2 Findings from literature review.......................................................................................................................................................66
5.3 Findings from study.........................................................................................................................................................................67
5.4 Research questions...........................................................................................................................................................................68
CHAPTER 6: CONCLUSION AND RECOMMENDATIONS...............................................................................................................69
Conclusion.............................................................................................................................................................................................69
Recommendations..................................................................................................................................................................................70
REFERENCES..........................................................................................................................................................................................72
APPENDIX................................................................................................................................................................................................75

Topic: Impact of COVID 19 in a Private Bank of Mauritius
CHAPTER 1: INTRODUCTION
1.1 Introduction
Covid-19 is the infectious disease caused by the most recently discovered Corona virus. This new virus and disease were unknown be -
fore the outbreak began in Wuhan, China, in December 2019. Covid-19 is now a pandemic affecting many countries globally.
COVID- 19 affects the entire world in opposite manner such as most of the business shut down because of unstable financial
condition while many companies fired their employees because they are not able to pay their workers. In the same way, banking sector
is also affected by the Covid-19 because the economy of the Mauritius is not stable and this in turn affect the overall condition of the
bank with regards to loan and interest. Similarly, the current study main purpose is to analyze the impact of Covid-19 in a private bank
in Mauritius in terms of its internal procedures primarily in terms granting loans to a particularly sector, downsizing in terms of staff
mostly those who are under specific contract terms and also early retirement scheme re-launched and Moratorium granted by Bank of
Mauritius etc. In the present study, a private bank is chosen because the pandemic impact all the organization effectiveness services
sector in multiple ways such since the banks are not well preparing for the lockdown and this in turn affect the operations in negative
manner. Along with this, the customers are also affected due to lockdown situation, while economy of entire world is suddenly
slowing down which affect the organizational effectiveness of bank.
The current dissertation will assist to determine the ways through which the bank may improve its operation effectiveness due
to pandemic time and secondary data is also used that assist to determine the gap in respect to topic. Also, with the help of correct
research methods, investigator also accomplish the results which in turn leads to meet the define aim and objective of a study.

1.2 Background of the study
The respective research is based upon the Covid-19 and its impact in a private bank in Mauritius. Note: The company chosen not
to disclose the name or any brand that will identify the company. With the help of the present study, scholar gain knowledge and
determine the areas through which the pandemic affect some particular segment in the bank in an opposite manner whether it is in
terms internal processes, internal procedure in terms of loan disbursement, risk of the company, regulatory framework, moratorium
granted by Bank of Mauritius, early retirement scheme & staff under contractual basis etc. This pandemic time affect the financial
institution’s operation because of facing issue related to the economic condition of a world. As the Mauritius banking industry
comprises of 20 banks in which 5 are local banks, 9 are foreign owned subsidiaries, 1 is a joint venture, 4 are branches of foreign
banks and 1 is licensed as a private bank. Hence, the banking industry of Mauritius closely monitoring the economic impact of Covid-
19 and also try to develop strategy in order to minimize the issue up to some level.
As a result, with such a small sector, Mauritius banking sector affected by Covid-19 because due to sudden lockdown the
repayment of bank loan has been stopped for some time and this is somehow affect the organization effectiveness and the financial
performance of the company in negative manner. On the other side, there are so many people who have lost their job because of a
pandemic because companies do not have money to pay their staffs. Due to sudden change in the situation of an entire world, the
banks are not well preparing to cope up with the problem and issues identified during Covid-19 and this in turn, decrease competition
and banks only develop the recovery packages to response the customer issue. So, with the help of current dissertation, scholar will
also analyze the challenges which a private banking bank faces during pandemic time and then offer the ways which assist an industry
to minimize the issue and again back on previous one.
1.3 Problem Definition
While conducting the study, there are many problems which a researcher faces such lack of effective resources. As the pandemic
start in 2020 and that is why, the data is not available in the Internet and most of the banks do not show their issues and this in turn
affect the results outcome in negative manner. On the other side, the pandemic affect entire world’s economy in such a manner that it