The changes in sectoral regulations and supervisory standards have made our financial sector safer and better capitalized. The introduction of the macroprudential framework strengthened its ability to absorb rather than amplify shocks. The resolution mechanism has reduced the cost of winding up financial institutions. All these steps have made our financial sector and our economy more resilient to adverse economic shocks.
The robust capital position of the banking sector is part of the reason why a major economic shock such as the COVID pandemic had a limited overall impact on financial and economic stability.