noted. the improvement in macroeconomic conditions together with enhanced resilience of the banking sector have helped to contain macrofinancial risks. the systemic risk indicator ( sri ) – the barometer of systemic risk used by the bank – confirms that risks have moderated across the macrofinancial landscape. the decline in inflation is one of the key contributors. on the external front, the rise in the fx reserves of the country to us $ 7. 3 billion as at end - december 2023 has helped to consolidate the country ` s resilience against external shocks. risks from the banking sector have fallen considerably with strong capital and liquidity buffers. at the aggregate level, both the household and corporate sectors have been exhibiting sound financial positions, despite relatively high interest rates and inflation. risks to financial stability from the household sector have subsided. key debt serviceability metrics of the household sector have improved. in particular, the ratio of debt servicing cost to income and to gdp are below pre - pandemic levels – at 16. 8 per cent and 6. 0 per cent respectively, in december 2023. in addition, household indebtedness relative to gdp has gradually declined, as the economy expands. the financial resilience of the household sector is further evidenced by its robust asset quality. the ratio of non - performing loans to total loans of the sector with banks fell to a multi - year low to reach 1. 8 per cent in december 2023. corporate sector activities maintained good momentum amid a favourable macroeconomic landscape. corporate indebtedness to banks relative to gdp dwindled further while earnings grew in tandem with the sustained economic expansion. credit risk from the corporate sector stayed relatively low, demonstrating benign risk from the business environment. the banking sector ensured continuous flow of credit to the economy. the annual growth of credit to the private sector reached 5. 1 per cent in january 2024, from 6. 5 per cent in september 2023. the growth was primarily led by the expansion of household credit at an annual rate of 10. 5 per cent in january 2024, as against 11. 8 per cent in september 2023. corporate credit grew at an annual rate of 1. 5 per cent in january 2024, relative to 2. 8 per cent in september 2023. the asset quality of the banking sector improved in the last quarter of 2023. the overall non - performing loan ( npl ) ratio dropped to 4. 4 per cent in december 202

future ready. it has become imperative to enhance its resilience, whilst also be more innovative. conscious of the significance of this task, i initiated a deep industry - wide reflection to devise a strategy for the banking sector in mauritius going forward. i have to express my appreciation to the mauritius bankers association and the ceos of banks and other stakeholders for their unflinching support in developing the roadmap. this roadmap translates the vision and strategic objectives for the banking sector into an actionable plan. the key initiatives in the roadmap focus on the domestic market, the global business strategy as well as products and services. the fundamental factors 3 / 4 bis - central bankers'speeches that will support the sustained expansion of the banking industry – such as the regulatory framework, esg, and capacity development – are also at the forefront of the strategy. i thank the oliver wyman team present here with us today which has relentlessly engaged with stakeholders locally and globally in crafting this report. going forward, the bank will ensure the execution of this roadmap in close collaboration with the banking industry and other stakeholders. in a few moments, we will have the privilege to see the honourable prime minister launch the report on the future of banking in mauritius. ladies and gentlemen i have set the scene for what the bank has in store for the coming years. these strides will contribute to boost confidence in the banking and financial system as well as unleash greater opportunities for the mauritian economy. over the next two days, we will have the opportunity to discuss many of these themes in greater depth and listen to expert views. before i conclude, i wish to express my gratitude to the honourable prime minister and also to the honourable minister of finance, economic planning and development for being among our midst today to mark the bank's emerald jubilee. last but not least, i thank all governors and representatives of central banks who have joined us to mark this momentous occasion. we look forward to working closely to adapt ourselves for our future. on behalf of the bank of mauritius team, i wish to thank you all for your presence today. thank you for your attention. 4 / 4 bis - central bankers'speeches