‘Financial sector stable despite challenges’

The banking sector was responsive to the needs of the economy and thereby helped achieve a more rapid and sustainable economic growth. The sector has become increasingly competitive and strong in recent years, Central Bank Governor Ajit Nivaard Cabraal said. The banking sector stability indicators improved, further consolidating progress.

During the year, several banks successfully accessed international debt capital following the advice of the Central Bank to tap international markets, he said at the launch of road map 2013 held recently.Further strengthening financial institutions and deepening financial markets will be key strategies for 2013 and beyond.

Banks are encouraged to access stable, large funding sources without relying only on short-term small-scale customer deposits. Banks are expected to raise a significant part of their Tier 1 and Tier 2 capital from foreign sources by building strong balance sheets, the Governor said.

- SJ