The Bank of Mauritius has granted licences to two new private banks as part of its plan to expand banking activities in Mauritius.

The Bank of Mauritius has granted licences to two new private banks as part of its plan to expand banking activities in Mauritius.

The Mauritius central bank said in a statement that Warwyck Private Bank and Banque Richemount Limited were the first two stand-alone banks to be licensed in Mauritius.

The island's central bank said that it will inform the public of the dates when the two banks will start operating.

The number of banks operating in Mauritius now stands at 23, of which three are specialised banks operating in the areas of Islamic banking and private banking.

The Mauritius central bank governor, Rundheersingh Bheenick, recently criticised delays in the island's efforts to develop Islamic finance.

In an annual letter to stakeholders, the governor said that increased legislation along with the financial tools such as Islamic bonds were needed to help boost the island's financial industry.

The Bank of Mauritius started moving away from the universal banking model when the law was amended in December 2007 to provide an enabling framework for the implementation of Islamic banking in Mauritius.

The first Islamic banking licence was issued in October 2009. In December 2010, the Banking Act 2004 was amended to broaden the range of banking activities and encourage banks to carry on specialised lines of banking activities.