History shows us that many transitions are accompanied by a boom bust cycle, whether it’s the dot-com bubble in the early 2000s, or the railway mania of the late 1900s. Whenever there’s increasing demand, a hype, or new market opportunities and instruments, there’s the risk of creating a new bubble.
The banking sector in the meantime continues to improve as evidenced by near pre-crisis NPL and NPA ratios, double-digit growth in assets and profitability, and capital adequacies way above the international standards, even after we implemented Basel II in July last year. Economic outlook Is the recent performance a short-term phenomenon? Is the country’s reduced vulnerability a passing episode? I don’t believe so.