These models are used to calculate internal economic capital allocations for various sub-portfolios of the bank, and it is because these internal capital allocations often differ substantially from the 8 percent regulatory standard that the problems arise.
The economy has staged a strong turnaround, growing by 5.6 percent in 2021. The full-year growth exceeded the government’s forecast of 5 to 5.5 percent. ​ The collective efforts of both public and private sectors proved crucial in ensuring a strong recovery. ​ Inflation remains manageable.