Developments on the monetary and credit fronts remained positive in the last year, with the banking sector’s credit quality indicators improving significantly and the domestic maintaining strong capital levels. Private sector loan arrears fell by over 12 per cent in 2017 and by a further 2.5 per cent in the first quarter of this year. Arrears in the non-performing segment declined by over 22 per cent last year and by an additional 0.1 per cent in the first quarter of this year. Interest rates were generally lower in 2017, led by commercial mortgages with a reduction of over 1 full percentage point to an average of 6.83 per cent. Residential and consumer loan rates both posted declines, of almost a point, to 5.76 per cent and 13.61 per cent, respectively. With the Government’s foreign borrowing activities, both bank liquidity and external reserves expanded
Developments on the monetary and credit fronts remained positive in the last year, with the banking sector’s credit quality indicators improving significantly and the domestic maintaining strong capital levels. Private sector loan arrears fell by over 12 per cent in 2017 and by a further 2.5 per cent in the first quarter of this year. Arrears in the non-performing segment declined by over 22 per cent last year and by an additional 0.1 per cent in the first quarter of this year. Interest rates were generally lower in 2017, led by commercial mortgages with a reduction of over 1 full percentage point to an average of 6.83 per cent. Residential and consumer loan rates both posted declines, of almost a point, to 5.76 per cent and 13.61 per cent, respectively. With the Government’s foreign borrowing activities, both bank liquidity and external reserves expanded