AfrAsia Bank - Annual Report 2015

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AfrAsia Bank Limited and its Group Entities
Annual Report 2015
page 147
The Bank forecasts a correction in the current excess liquidity
situation with Bank of Mauritius intervention, while the Repo rate
is expected to remain unchanged. With the Work in Progress
paper on Primary Dealers Requirements due this year, the Bank
should expect a more active secondary market for Treasury Bills
and with the injection of fresh capital, its strategy going forward
will be to increase the Trading book portfolio and become the
most active Money Market and Fixed Income Trading house.
Balance Sheet Management
AfrAsia Bank Limited’s Money Market and Fixed Income desk
is in charge of managing the assets and liabilities of the bank.
The desk’s focus is as follows:
formulate ideas and strategies to take advantage of money
market movements.
work closely with other business units to identify deposits/
loans trends, and possible impact on the Bank’s liquidity.
constant follow-upofmarket changes, especially those related
to monetary and fiscal policies that would have impact on the
direction of interest rates in the major markets.
protect the Bank’s liquidity position in maintaining excellent
cash-flows reports, and adopting certain tolerance levels in
managing liquidity.
use Repos, Reverse Repos, Swaps and any other available
approved methods of funding to ensure the most efficient
way of funding the various activities of the bank.
during FY 2014/2015, the Bank has actively sought to
maximised yields in the FCY Interbank (I/B) placements;
an illustration of progress for Interest received through
interbank placements is shown below:
I/B PLACEMENT- INTEREST RECEIVED
for the FY 14/15, Total interest from FCY Interbank placements amounted to USD 4.69Mio averaging USD 391k per month as
compared to USD 3.30Mio for FY 13/14 with an average monthly interest of USD 275k.
Going Forward
The Bank’s goal is to be a one-stop shop for Treasury requirements both for local as well as international clients. The Bank feels that
Mauritius has all the capabilities of being the funding centre for the rest of Africa. However, with the level of sophistication that the
Bank is bringing, it aims to become the centre of excellence in terms of Treasury and Financial Markets solutions for the continent.
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I/B Placement - Interest Received