The ratio of the highest loss-absorbing capital to risk-weighted assets rose from 7.1 per cent in 2007 to 13.9 per cent last December. The balance sheets have been cleared of most non-performing loans, which have fallen by two thirds over the last four years (Figure 12).
In the first quarter of this year, the banking system’s capital position improved further; a contributory factor was the decision not to distribute dividends, in accordance with the recommendations of the supervisory authorities. No liquidity tensions were recorded and retail deposits continued to grow.