In the first semester of 2019, banks’ balance sheets exhibited steady growth in both assets and deposits. Asset quality also remained stable while capital adequacy ratios stayed well-above international standards. Banks maintained dominance in the financial sector, with universal and commercial banks (U/KBs) accounting for about 91 percent of banks’ total resources.
Spreads between secured and unsecured money market rates declined significantly: for example, the spread between the three-month EURIBOR and the three-month overnight index swap rate decreased by 170 basis points from its peak recorded in October 2008, falling to about 30 basis points one year later and remaining close to this level thereafter.