, who, according to the reserve bank of india guidelines, are those who do not repay deliberately despite having sufficient funds and a solid net worth. the public sector banks have even started publishing photographs of the borrowers in newspapers. maybe it is high time that we start considering to bring amendments to our own law to disclose the name of the top defaulters. or even consider the coordinated efforts of the four banks, with or without the blessing of the central bank so as to ensure a favourable and rapid outcome. the bad experience of our bankers sheds light on the fact that however meticulous they may have been, banking remains a risky business. the bank has lately been considering a system of information - sharing on cross - border loans although we do recognize the difficulty of accessing information on foreign clients. a good reputation requires conscientious regulatory compliance. the rapidly evolving financial landscape is keeping the regulator on its toes to ensure that we are up to the mark bis central bankers ’ speeches when it comes to international best practice. we champion a proactive and thorough approach to fraud risk management which includes among other things, putting in place a whistleblowing procedure and where it already exists to review it, and educating staff about fraud. we need to be alert to the growing impact of the prevalence of gambling in our country for it is l ’ appat du gain which motivated the public to invest in placements that offered unrealistically high returns. over the years, the bank of mauritius and the mauritius bankers association have developed a strong partnership. more than ever, we need to consolidate this partnership and live up to the four rs of a sound banking sector – regulation, reputation, results and resilience. together we can continue facing the daunting challenges that await the financial sector when it comes to the next - generation regulation. thank you. bis central bankers ’ speeches

##ious combination of two measures. first, we raised the cash reserve ratio from 6. 0 to 7. 0 per cent in february 2011 and increased the minimum daily cash ratio from 4. 5 per cent to 5. 0 per cent. second, we stepped up the issuance of bom paper to nearly rs10 billion. to cope with persistent problems of liquidity overhang in different parts of the maturity spectrum, we extended the tenor of our paper well beyond the usual maturity of central bank paper of up to one year, and continued with the practice of issuing bom notes with maturities of 2, 3 and 4 years, which we started in august 2010. the operation was successful and was favourably commented by the january 2012 article iv consultation mission of the imf. ( more on this issue ) another interesting development in the money market that occurred during the year is the daily publication of the port louis interbank offered rate ( plibor ) as from 26 august 2011 on the reuters page at 12 00 hours. the plibor, which is an average interbank rate, is computed and published for four tenors, namely overnight, one week, one month and three months. these rates will be also available on the bank ’ s website in early 2012. ( more on this issue ) domestic foreign exchange market the tumultuous conditions prevailing in international currency markets prompted us to take steps to prevent contagion from seeping into our small, but completely open, domestic foreign exchange market. the bank intervened actively to smooth out excessive rupee volatility – while taking extra care to remain broadly neutral and avoid any unnecessary and dangerous balance - sheet risks – with total foreign currency purchases equivalent to us $ 533 million nearly matched by foreign currency sales equivalent to us $ 512 million. we continued to provide the state trading corporation, at their request, with their foreign exchange requirements to pay for food and fuel imports. we maintained the foreign currency swap facility, introduced at the beginning of the crisis in december 2009. we, however, decided to withdraw the special foreign currency line of credit that had been made available to banks for trade financing since december 2008. i am pleased to note that, as a result of our vigilance, liquidity conditions on the foreign exchange market stayed comfortable throughout 2011, with a roughly similar total turnover of foreign exchange transactions as the previous year, and the rupee behaved fairly well during the year, contributing enormously to maintain price stability and real incomes in our import