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Question 1:
(a) Explain the rationale behind financial sector development and liberalisation in a developing economy like Mauritius.
(b) Discuss the various policy and institutional changes that has taken place in the Mauritian financial system over the years. Has financial liberalisation been really a success in the Mauritian economy till date? Why or why not?
Question 2:
(a) Clearly discuss the different roles performed by retail banking, wholesale banking and corporate banking. How can these institutions foster the financial intermediation process?
(b) Discuss the arguments behind the financial intermediation process.
Question 3:
(a) By clearly illustrating the concepts of bank soundness and banking fragility, explain the rationale behind banking sector supervision in a developing economy like Mauritius.
(b) Discuss the various measures that the Bank of Mauritius has set in place in order to regulate and monitor banking activities in Mauritius.
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