The more challenging economic environment has led to a sharp rise in non-performing loans on the commercial banks’ balance sheets – from 1 per cent to 5 per cent. The nonbanks, that cater to a somewhat different clientele have recorded an even more sizable increase in loan delinquency – from around 4–5 per cent to almost 12 per cent of total loans.
Fortunately, the banking system – both the banks and non-banks, have the resources to adequately provide for these bad loans. We, in the Central Bank, do not have up-to-date comprehensive data for the credit union sector.