BAD LOANS REGISTER A 4.5% DROP – Malawi News Online
According to Governor of the Reserve Bank of Malawi (RBM), Dalitso Kabambe, has said non-performing loans (NPLs) in commercial banks have dropped to 12.1% in July 2018 to 4.5% in July 2019.
According to Kabambe, the significant improvement in the NPL ratio is due to the improved asset quality in the industry, anchored by write offs, loan restructuring and recoveries. “The banking sector continues to remain sound and stable, as it continues to be adequately capitalized, profitable and liquid. I am particularly delighted that, for the first time since 2012, the industry average of the non-performing loans ratio is below the maximum acceptable benchmark of 5%.” he said.
During the launch of the NBM development Bank, he assured the business community that the monetary authorities would continue to work with Treasury to ensure that the current macroeconomic stability with low inflation, stable exchange rate and declining interest rates is sustained to replicate economic growth rates witnessed in 1971 and 1995.