BoM Revokes the Licence of Bramer Bank

The Bank of Mauritius (BoM) has revoked the licence of the Bramer Bank, effective immediately. A communiqué was issued yesterday night to inform of the decision. Each of the 20 branches of Bramer Bank was guarded by the police since yesterday evening, as prescribed by high-ranking officials of the CCID headquarters.

bramer_bank

The licence was obtained back in 2008. It has now been revoked under the section 17 of the Banking Act of 2004. It is explained in the communiqué that the BoM has “conducted an on-site examination at Bramer Banking Corporation Ltd (BBCL)” from the 22nd of January to the 20th of February 2015. The investigation began when the authorities decided to look into certain matters after they obtained relevant information.

On the 27th of last February, the BoM informed of a number of deficiencies persisting since 2012.

 

Other of the complaints the BoM has been worded as follows:

“The bank has relied heavily on daily basis since 6 March 2015 for overnight facility from the Bank. It has also failed to maintain the minimum cash reserve requirement as from the maintenance period that started 5 March 2015”.

The BoM argues that the capital of Bramer Bank “is seriously impaired”, adding that “BBCL has been carrying on business in a manner which is contrary or detrimental to the interest of its depositors and the public and that the Bank pose serious systemic risks to the domestic financial system”.

Consequently, this led to the BoM revoking the banking licence of BBCL with immediate effect.

It was around nine o’clock last night when the 20 branches of the bank were put under police surveillance. The police officers were given the instructions of keeping an eye on the people coming and going from the bank – this lasted from yesterday night to today morning.

Some of the ATMs – those found in Plaine Wilhems – were still operating yesterday, but once the money was exhausted, all activity ended. Many clients of the bank who learned of the news concerning the bank went to the ATM for withdrawals.

Bramer Bank had also issued a communiqué on the 1st of April, purporting that it had noticed malicious and defamatory statements made against the bank on Facebook. A complaint was even filed at the police station of Curepipe on Monday night and at the Central Criminal Investigation Department on Tuesday morning. The communiqué was also meant to reassure its clients that it would soon implement strategies of development on the medium and long terms. But, now its very licence has been terminated.

2 comments

  • Why the Government took the 1,3mrds out of the Bank Why the pressure from Government on Bramer Why close Bramer on Friday Why Mr Rawat was not allowed to send money to the own Bank? Why this? Cool down this is not good for the reputation of Mauritius normaly banks get bailed out why not now? why this theater?

Your Header Sidebar area is currently empty. Hurry up and add some widgets.

Pin It on Pinterest