MPC Press Release – September 2020

The banking sector remains liquid, well capitalised, and well-positioned to support growth. The sector remains robust as reflected by the strong Financial Soundness Indicators and the Banking Sector Stability Index. Banks are well capitalized to contain short-term liquidity pressures and any possible worsening of the economic environment. The NPL ratio has declined marginally and profitability remains strong. The recent survey results revealed that while the pandemic has increased the industry’s cost of operations, banks have not passed on the associated costs to consumers through higher interest margins.