Transparency helps us not only with accountability, but also with building legitimacy and public trust. To be clear, I do not consider transparency to mean leniency. We hold banks of all sizes to high standards, commensurate with their size and risk, and being transparent does not dilute the rigor of our regulatory standards.
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.