The expansion was funded by the 12.5 percent growth in deposits mostly deployed to lending activities. Loans were broad-based across various borrower and industry types. The banking system is healthy and profitable. Overall profitability is buoyed by the increase in core income from lending activities. With staunch commitment and consistent dedication, capitalization of the overall banking system is now above the regulatory thresholds.
Banks continue to adhere to sound credit underwriting standards as shown by the very satisfactory quality of the banking system’s loan portfolio. Moreover, banks are well prepared to bear credit losses as they have set up adequate provisions for possible defaults. They maintain an NPL coverage ratio of over 100 percent.