Banks have to realize that the bankability of the poor holds a major opportunity for the banking sector in developing a stable retail deposit base and in curbing volatility in earnings with the help of a diversified asset portfolio.
BoU has successfully ensured financial sector stability, including through resolving commercial banks that posed systemic risks by being very highly interconnected, both by the number and size of transactions with the other commencial banks. Currently, commercial banks are wellcapitalized, liquid, and profitable. Improvements in asset quality have contributed to an easing of lending standards and credit recovery.