These efforts have further enhanced the ability of the financial system to respond to the changes that have occurred. The banking sector recorded improvements on all fronts, enhancing the ability to compete effectively and strengthening the resilience to weather any potential adverse developments in particular, any external shocks to the system. The level of capitalisation remained consistently strong with the riskweighted capital ratio of the banking system above 13% for the period concerned with quality of portfolio continuing to improve further amidst sustained economic performance. The banking sector also continued to record strong profitability performance despite the increasingly competitive operating environment. In 2005, the banking system as a whole registered a pre-tax profit level of RM12.4 billion with a higher component of the revenue originating from service related activities such as the sale of wealth management products and remittance services, as well as from trading and investment activities. With this stronger performance and enhanced capability to manage risk exposures, several banking institutions have also taken the next step and moved forward to expand in the regional market to reach new sources of business opportunities. On the domestic front, there has been a narrowing of the gap as compared with the foreign banks. Further initiatives undertaken include enhancing the operational aspects and delivery of services to banking consumers through the rationalisation of the configuration within respective banking groups.
James McAndrews: The economy and the household debt and credit report Remarks by Mr James McAndrews, Executive Vice President and Director of Research of the Federal Reserve Bank of New York, at the household debt and credit press briefing, New York City, 28 February 2013. *  *  *  Good morning and welcome to the New York Fed. I am pleased to have this opportunity to talk with you about some of the exciting research we are doing here at the Bank. This morning my remarks will focus on national economic conditions and then I will introduce our special presentation today on household debt and credit conditions. What I have to say reflects my own views and not necessarily those of the Federal Reserve Bank of New York or the Federal Reserve System. National economic conditions It has been three and one half years since the end of the “Great Recession.” But, the pace of this expansion so far remains very sluggish compared with previous post-World War II business cycles: the level of real gross domestic product (GDP) in the fourth quarter of 2012 was only around 2½ percent above its previous peak in the fourth quarter of 2007. To put this into perspective, at this point in time following recessions in 1973, 1981, 1990 and 2001, the level of real GDP ranged from 14 percent to 18 percent above the previous cyclical peak.