Investigating the COVID-19 Impact in the Mauritius Banking Sector

This report investigates the impact of the COVID-19 pandemic on the Mauritius banking sector, focusing on a private bank's operational effectiveness and financial performance. The study examines the challenges faced, including decreased productivity, customer confidence, and employment issues. The research employs a quantitative approach, collecting both primary and secondary data from bank managers to analyze their perspectives on the pandemic's influence on work-life balance, loan disbursement, and the adoption of technological strategies. The report highlights the impact of the pandemic on the banking sector, analyzes the challenges faced by the private banks, and offers recommendations for improving working effectiveness and employee performance. The findings show the trend of the private bank in Mauritius and how COVID-19 influences it. It also covers the challenges faced by the bank and suggests ways to improve working effectiveness.

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
before 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

took enough time to recover the same. Apart from this, researcher also faces problem with regards to time management because there
are so many areas within the bank that affect the results in adverse manner. Moreover, investigator also face issue related to under
experience team mates due to whom they are facing challenges in terms of gathering information for generating the best outcome in
successful manner.
1.4 Aim and Objectives
Aim: The aim of the study is “To investigate the impact of Covid-19 in the effectiveness of a private bank in Mauritius: A study in a
private bank in Mauritius”
Objectives:
 To understand the trend of the private bank in Mauritius.
 To analyze how Covid-19 influence the private bank in Mauritius.
 To determine the challenges, face by the private bank while minimize the negative impact of Covid-19.
 To recommend the solutions through which the private bank improve its working effectiveness.
1.5 Research Questions
 What is the trend of the private banking Mauritius?
 How Covid-19 influences the private banking Mauritius?
 What are the challenges face by the private bank in Mauritius while minimize the negative impact of Covid-19?
 What are the ways through which the private bank can improve its working effectiveness and employee’s performance?

Impact on Mauritian banking sector
The COVID- 19 pandemic has severely influenced the key internal procedure of the Mauritian banking sector. Downsizing i.e.,
staff who in turn are under contractual basis are in turn considered to be at a greater risk. This eventually effects the employment
opportunities for the individual and hamper their day to day living. COVID 19 has imposed high degree of greater risk on the
operational effectiveness and employee’s performance of the company. It hampers the way Mauritian banking industry works.
There seems to be high degree of effect related with the COVID-19 pandemic upon the credit agreements. Moratorium which has
been granted by Bank of Mauritius is another major impact of COVID- 19.
Impact in Mauritian context
The government of Mauritius has effectively responded to the impact of COVID- 19 and has taken stringent action in order to
reduce the number of cases. The banking sector and the Mauritian economy has been severely impacted because of COVID- 19 which
leads to unemployment.
Current situation
The Mauritian bank focuses on taking relevant COVID-19 support measures in order to support the business and Mauritian household
which has been impacted.

Influence
COVID-19 has severely impacted the working of the Mauritian bank because of unfavorable economy outcomes. The government
must take necessary measures to ensure sufficient liquidity is maintained. COVID-19 has also influenced the business performance.
Recommendation
One of the key measure taken by the Mauritian government is to effectively alleviate the key obligation associated with the
borrowing in relation to the COVID- 19 pandemic. Complying with the key legislation and act like borrower’s protection act, 2007 is
a relevant measure at the time of COVID- 19 pandemic.
Impact of a COVID- 19 pandemic on organization effectiveness
Journal 1: Economic impact of government interventions during the COVID-19 pandemic: International evidence from financial
markets.
The COVID- 19 has severe set of impact on the performance of the banking company because it leads to change in the
working procedure. It has led to work from home in order to protect individuals from the corona virus. It has also changed the attitude
of the person to work within the organization.
Journal 2: The Impact of the COVID-19 Pandemic on Firm Performance.
COVID-19 Pandemic has led to the maintenance of the work life balance. It has also led to unemployment which resulted in the
downsizing of the staff. This is because of the low profitability and sales of the company.

1.6 Significance of the study
As the research topic of the study is impact of Covid-19 in the private bank in Mauritius and by study on this topic will help the
researcher to analyze the results. The study also assists the private bank because it provides the ways through which negative impact
of Covid-19 may reduce and those strategies will be easily implemented in the bank as well. Beside this, other researcher or scholar
may also read the study and use the content in their own research when they conduct same study. Thus, it is analyzed that with the
help of a literature review conducted in a study, scholar examine the gap and also contribute their best in order to generate the best
outcomes as well.
1.7 Scope
The scope of the research study is significant because it helps in explaining it to the extent associated with the area of research
within the specific parameters. The scope on this research subject topic is very wide because limited research has been carried out
upon the specific subject matter. The researcher has wide degree of scope because it is the broad subject matter. Appropriate degree of
research is required upon the impact of Covid—19 in a private bank in Mauritius. This research will be highly beneficial to the health
care department of the Mauritius and can be used for the future investigation related with the subject matter. The researcher has also
carried out because of the own personal interest of the researcher. This will be beneficial for the investigator to gain conclusive set of
results and helps in broadening the knowledge related with the subject matter. Moreover, this research has also been carried out
because of the academic interest. This is significant in attainment of the better results and will helps in attaining the relevant answers
to the specific set of research questions. This research has been prominent in determining the challenges face by the private bank while
minimize the negative impact of Covid-19. Moreover, it also covers the relevant aspects of the study related with the recommending
solutions through which the private bank improves its Organisation effectiveness and its employee’s performance. This study helps in
generating relevant theories and gain viewpoints of the various authors and researchers.