Page 33 - BANKING FINANCE November 2018
P. 33

A

            ot onl  gross    s increased   ut also each  road sector   osses erode ca ital  So  this has added  ressure on SC s
           registered an increase   hich can  e  eri ied  ro  the  regulator  ca ital ratios   heir ca ital to risk  eighted assets
            ollo ing chart deri ed  ro  the sa e re ort o  R     t  ratio  CR R  declined  arginall   et een Se te  er
           indicates that none o  the  road sectors sho ed signs o   and March        hich can  e o ser ed  ro  the  ollo ing
           reco er                                             chart deri ed  ro  the a o e entioned re ort o  R






















              a   o   i        on  ro i ionin  an               u ure  roje  ion o
                                                                t is  rightening to kno  that  rojections o   uture
            ro i a ili
                                                                resent an e en gri  er  icture   s  er R   s  inancial
            ncreased     s  lead  to  higher   ro ision  and  higher
                                                               Sta ilit  Re ort o   une         he   stress tests indicate
            ro isions take toll on  ro its   n outco e o  high  ro isions
                                                               that  under the  aseline scenario  the      ratio o  all SC s
           is that all  ank t  es  i    u lic Sector  anks   S s    ri ate
                                                                a  increase  ro        ercent in March      to
           Sector  anks     s  and  oreign  anks    s  registered a
                                                                ercent    March        o e er  i  the  acro econo ic
           high  CR   ro ision Co erage Ratio  in March
                                                               conditions deteriorate   their       ratio   a  increase
                                                                urther under such conse uential stress scenarios
            hus   ro ita ilit  o  scheduled    co  ercial  anks  SC s
           declined shar l  in        n  act   an   anks sho ed losses
                                                                 ong the  ank grou s   S s       ratio  a  increase
            or the  ear           s a     roduct o  losses    oor
                                                                ro        ercent in March      to       ercent    March
            ro ita ilit   Return on  ssets  Ro   also registered a shar
                                                                    under se ere stress scenario   hereas    s       ratio
           decline  o     ollo ing is an e cer t o  Ro   e tracted  ro
                                                                a  rise  ro       ercent to      ercent and   s
           R   s  inancial Sta ilit  Re ort
                                                               ratio  ight increase  ro       ercent to      ercent






















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