It’s good that our banks make profits as it shows they are running their affairs well. But if they make excessive profits, then it could reflect badly on the regulator. It would mean we are not doing our job. Transparency This is the reason that we, at the Central Bank, are keen to have an extra dose of competition in the banking sector.
The diminution in the Fund’s lending is the result of both structural and cyclical factors. The structural factors include the prevalence of flexible exchange rate regimes, the improved quality of members’ economic policies and the ability of the private financial markets to satisfy the demand for credit. However, an end to the present positive phase cannot be ruled out.