Despite the rapid expansion of credit, loan quality has remained satisfactory with non-performing loans at only 2.0 percent of the banking system’s total portfolio. The banking system also maintains an acceptable level of liquidity that can be readily utilized during periods of stress.
Liquidity of universal and commercial banks (UKBs) and subsidiary banks and quasi-banks remained ample as the liquidity coverage ratio as of end-September 2019 stood at 171.2 percent on a solo basis and 169.0 percent on a consolidated basis.