We shall also continue to work closely with Government Ministries and agencies to ensure that operations of other microfinance institutions are properly conducted. The proposals for streamlining policy on regulation and supervision of the different forms of microfinance institutions have already been undertaken by Government.
Significant banks’ return on equity was less than 6% in the 12 months to September 2019, falling short of their cost of capital, which is estimated at around 8% to 10% for the majority of banks.1 Euro area banks’ market valuations remain depressed, with an average price-to-book ratio of around 0.6, mirroring concerns about weak current and expected profitability.