, coupled with high excess production capacity, resulted in a contraction in private investment. However, public spending continued to grow from current expenditure through disbursals for public health
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
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
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
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
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