This was reflected in a stronger capital structure, improved NPLs, stronger profitability and recovery in bank intermediation. All banks are now in compliance with the mandatory capital adequacy ratio of 8%.
This has allowed the banking sector’s net income to grow as new credits extended have increased in the first half of the year and non-performing loans continue to remain under control with net NPLs reaching only 1.02% in June. Given the improved financial condition of the banking sector, the Government is in position to privatize banks to be owned other than by the government.