beginning of the year, depressing farm income and the purchasing power of farm households, which represent a majority of the population. Coupled with high levels of household debt, these factors limited the

power, as farm income continued to be constrained by low prices of agricultural products and nonfarm income remained lackluster. Moreover, high levels of household debt caused the generation of new loans

continue to be major challenges. However, with a relatively high level of capital and the regular setting aside of additional provisions, commercial banks can still maintain an adequate cushion for NPL in

of infrastructure investment such as the Eastern Economic Corridor (EEC), mass transit trains and high-speed railways will bolster business sentiment. Moreover, there are indications that suggest

quarter of 2018 continued to improve. Export performance remained strong, with 12.3 percent year-on-year expansion. Tourism also continued to perform well despite the end of the high season, as tourist

Tier-1 ratio will be 13.93%. The Bank Tier 1 capital are all Common Equity Tier 1 contributing to 77.16% of total capital reflecting high quality of capital. Capital Requirement (%) Minimum regulatory

, and managing loan quality and NPL continue to be major challenges. However, with a relatively high level of capital and the regular setting aside of additional provisions, commercial banks can still

global economies and may lead to economic recession. Meanwhile, managing loan quality and NPL will continue to be major challenges, especially during the economic downturn. However, with a relatively high

prepared for the adoption of IFRS 9. Non-performing loan of the commercial banking system are projected to increase at a slower pace during the rest of the year. However, given its relatively high level of

the loan to deposit ratio and the Liquidity Coverage Ratio (LCR) which reflects the excess liquidity in the commercial banking system. With the combination of the recent high level of provisioning in