the highest roe was 28. 6 %. i am not aware of any real sector operator posting nearly 30 % returns in 2013, do you? banks earn returns not just on their own initial equity, but also on the deposits which they mobilise from the public, which are far in excess of their own equity. some banks have deposits - to - equity ratios of up to 2, 200 %, that is, in plain language, deposits are 22 times the initial equity capital of the owners, excluding reserves and bis central bankers ’ speeches accumulated surplus. the yields on their assets go to their bank equity holders. few businesses can leverage their capital that much. it is normal that in return, they are subject to tight supervision and occasional recourse to special levies to finance government expenditure. if some are complaining about banking being overtaxed, they can always move out of the banking space to other sectors of the economy. i can assure you there is no dearth of demand from outsiders to gain entry to the domestic banking scene. let me conclude! i sincerely congratulate the board, management and staff of bramer bank on the inauguration of these premises. i wish you success in your endeavours to fulfil your priorities for innovation and quality of service, to your customers and to the country. bis central bankers ’ speeches

see just how many of those banksters, our rash colleagues abroad, will end in jail, as the multi - billion dollar fines they are paying are not nearly the end of this story. happily, here in mauritius, with judicious regulation, prudent local bankers, and a good bit of luck, we escaped the worst of that phase of irrational trading, and set our compass on a more ethical course. yet, rapid credit growth and asset price bubbles have made regulators worldwide question their domestic micro - and macro - prudential policies to cope, amongst others, with the unintended consequences of the lingering low - interest - rate environment. the loan - to - value ratio, that we recently introduced, aims to contain speculative pressure in our property market, which has been pushing prices beyond their real value. first - time buyers will not be adversely affected by these measures for we recognise that first - time buyers are an important segment of housing demand. moreover, the risk of default is minimal as they are more committed to honour their obligations. wider home - ownership is also a source of bis central bankers ’ speeches social stability. this is the rationale for extending the loan - to - value ratio for first - time buyers from 80 % to 90 %, which the 2014 budget has improved to 95 % for eligible borrowers, subject to a partial state guarantee. we also introduced a debt - to - income ratio, for two reasons : first, to prevent households from getting trapped in excessive debt ; and second, to force borrowers to make informed decisions when buying a property. these will save them from the sale - by - levy trap of foreclosures against defaulting borrowers. these macro - prudential measures, together with the adoption of basel iii early next year, will do much to improve the resilience of our financial system. over the years, we have been building our financial infrastructure to transform the country into a respectable international financial centre. it is a slow and patient undertaking which forces us to keep abreast with international best practice. occasionally, those who are comfortable in what they have been doing so far may feel that we are moving too fast. they fail to recognise that we are now operating in a very dynamic environment. we just cannot afford to have a domestic financial sector where core elements are resistant to change. we are overhauling corporate governance practices in banks, with particular emphasis on the responsibility of the board of directors, on the choice of board members