The Experience of the Development Bank of Mauritius

Development Banks are established to facilitate the development agenda of economies by providing financing and technical support for high-risk projects. This chapter provides a comprehensive overview of the Development Bank of Mauritius (DBM). Archives, interviews, and the annual reports of the bank were depended on in executing the review. From the review, the clear indication is that like many development banks around the globe, the DBM plays a key role in the growth and development of Mauritius through the stimulation of Micro, Small, and Medium-Sized Enterprises (MSMEs) activities. In general, the bank has implemented sound board level governance mechanisms as well as internal control functions to ensure appropriate behaviour in the bank. In addition, risk management practices seem sound and acceptable while the institutional and supervision regimes are being largely complied with. Given its nature, the bank must establish a monitoring and evaluation function to ensure that its impact on the economy is well measured. This will also facilitate informed and quality decision-making. More so, per the financial data of the bank over the period examined, it can be concluded that the bank is sound and healthy financially. However, it is imperative that they do not relent on their efforts but more importantly pursue robust strategies and mechanisms that will better promote performance and make them more viable.