27Jan2012
Financial Stability Report 2011 Continuing uncertainty about the prospects for a recovery in the global economy contributed to a lower demand for loans from banks by firms and households, and to a significant slowdown in the growth of domestic deposits. Although asset quality has declined, banks have been resilient over the period of the crisis. Capital adequacy levels have been above the statutory requirements, and banks have remained profitable, although less so than prior to the recession. Credit unions have also faced a slowdown in loan demand and higher non-performing loans, though their ratio is not as high as for banks. Financial institutions operating locally, both banks and insurance companies, are strongly linked with regional and international financial markets. The banks are well insulated from potential loss exposure due to their external asset/liability positions, but both banks and insurance companies are still exposed because of ownership links. ...
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