In recent months, our financial institutions have shared in the economic adjustment through the domestic debt restructuring. At the same time, implementation of the new IFRS 9 accounting standard has also adversely impacted the profitability and capital of banks and insurance companies. However, the financial system remains stable and adequately capitalized.
Many persons focus on the stabilization aspect of the programme but this morning I wish to highlight that the process of transformation particularly as it relates to financial services has started. First, the domestic and international banking and insurance sectors each now operate under one act, the Financial Institutions’ Act and the Insurance Act, respectively.