Asset growth is supported by a stable deposit funding base. In line with the country’s domestic growth, banks’ total loan portfolio grew by 17.3 percent and is diverse across industry sectors. Notwithstanding sustained expansion in credit, banks demonstrate prudence in lending. Banks’ NPL ratios improved to 2.0 percent as of end-August 2017.
Banks also maintained adequate buffer for loan losses, registering a higher NPL coverage ratio of 114.1 percent. Meanwhile, banks continue to build up their capital position. As of end-June 2017, the capital adequacy ratio (CAR) of universal and commercial banks (U/KBs) registered at 16.0 percent. This solid performance did not happen overnight.