On the other hand, banks will benefit from the mechanism since it will address the problem of information asymmetry that was used to raise a risk premium on loans and by extension the problem of non-performing loans which has in the past threatened the stability of the banking sector.
The traditional problems of moral hazard and adverse selection that hinder financial sector growth have been minimized. Ladies and Gentlemen: These innovations have seen our financial sector experience transformation as evidenced by the following outcomes:   Exponential growth of bank branches from 740 in 2007 to 1,072 in April 2011.