Thus, even as we face a slowdown in external demand and capital flows, the stronger external liquidity position that we currently enjoy will make us less vulnerable to the moods and swings of international financial markets. This slide shows that (1) The banking system’s asset base has been expanding steadily, supported by sustained growth in deposits.
They were given a helping hand by liberalisation and the technological advances of the internet in the 1990s; this gave foreign banks a fast and low-cost channel for communicating with customers. And they seized their chance. Some foreign banks therefore set up shop as online banks to conduct deposit business but also to engage in business with standardised consumer loans.