Technology-enabled improvements and the desire to improve earnings have led many banks to enter new markets (global and national) driving increased competition in local markets by the adoption of new technology. Competition from non-banks and virtual entities have also increased.
The sustained BOP surplus resulted in the continued build-up of the country’s gross international reserves (GIR), which stood at $ billion as of end-August 2008. At this level, the GIR is equivalent to 6.0 months’ worth of import cover, 2.9 times the country’s short-term external debt based on residual maturity.