The industry also enjoys low exposure to bad debts, with the non-performing loans ratio at a mere 1.6 percent as of end-July this year. The industry likewise exhibits robust lending activity, with credit helping boost not only household consumption but also business activities, such as real estate, trade, manufacturing, and construction, among other sectors.
In addition to the financial strengthening of the resulting entities, the grant of these incentives is expected to allow such entities to achieve economies of scale, attract more skills, and better manage their liabilities.