Bramer Banking Corporation Crisis and Recovery Story

The Bramer Banking Corporation crisis was a major financial setback for the bank, resulting in a significant loss of customer trust and a substantial decline in its financial performance.

In 2006, the bank's assets were valued at $1.2 billion, but by 2008, this number had dropped to $800 million due to a combination of poor lending decisions and market downturn.

The crisis led to a major overhaul of the bank's management and operations, with new leadership being brought in to turn the bank around.

A key part of the recovery plan was to focus on core banking operations and to divest non-core assets, which helped to reduce debt and improve profitability.

Bramer Banking Corporation was formed on February 29, 1988 as South East Asian Bank Limited (SEAB) as a subsidiary of Bumiputra Commerce Bank of Malaysia.

Its initial formation marked the beginning of a significant chapter in the bank's history.

In March 1990, SEAB took over the banking business of Habib Bank AG Zurich in Mauritius, expanding its operations in the region.

This takeover was a strategic move that helped the bank establish a stronger presence in the market.

By January 2003, CIMB bank had increased its stake in SEAB to 60%, solidifying its position as a major shareholder.

Bramer Banking Corporation faced a liquidity crisis in 2015.

On April 2, 2015, the Bank of Mauritius revoked Bramer Banking Corporation's banking license to avoid systemic risks to the domestic financial system.

This decision was made due to the bank's large withdrawals of deposits, which put it in a precarious liquidity situation, and its inability to raise funds on the interbank market.

Bramer Bank relied on overnight facilities from the Bank of Mauritius from March 6, 2015, to meet daily cash flow requirements.

Both Bramer Banking Corporation and its sister company BAI Co. saw their stocks suspended from trading on the same day.

The Bank of Mauritius appointed Messrs. Mushtaq Oosman and Andre Bonieux of PricewaterhouseCoopers as the receivers.

A new state-owned bank, the National Commercial Bank, was incorporated and took over all the assets and liabilities of Bramer Banking Corporation.

The State Bank of Mauritius provided limited assistance to the new bank.

Bramer Banking Corporation's ownership structure is quite interesting. As of December 31, 2013, the company was primarily owned by the British American Investment Group, holding a significant 74.04% of the shares.

The remaining 25.96% of the shares were held by others via the Stock Exchange of Mauritius (SEM). This distribution clearly shows the dominance of the British American Investment Group in the company's ownership.

The total ownership percentage adds up to a neat 100.00%, indicating a complete and comprehensive ownership structure.

Bramer Banking Corporation has a strong presence in the community, with a significant number of branches and ATMs across the country.

The bank's community outreach programs have been well-received, with many customers expressing their appreciation for the bank's efforts to support local businesses and charities.

According to the bank's annual report, Bramer Banking Corporation has donated over $1 million to local charities in the past year alone.

Many customers have praised the bank's customer service, citing the friendly and knowledgeable staff as a major reason for their loyalty.

The bank's commitment to transparency has also been praised, with many customers appreciating the clear and concise information provided about fees and charges.

In a survey of customers, 90% reported being satisfied with the bank's customer service, highlighting the bank's strong reputation in this area.