Central Bank of Seychelles MONTHLY REVIEW

Transcription

1 Central Bank of Seychelles MONTHLY REVIEW August 214

2 1. Key Economic Developments The month under review saw a further decline in inflationary pressures, with the year-on-year and 12- month average rates standing at.8% and 2.4%, respectively. Nonetheless, most indicators suggest rising inflationary pressures ahead, prompting the Bank to tighten monetary policy further at the start of August in order to alleviate such risks. Moreover, with the objective to offer more guidance to the market, promote better liquidity management at commercial banks and eventually strengthen interest rate transmission, at the start of the month, the Bank fixed interest rates on deposit auctions arrangements (DAA), the instruments through which it removed liquidity from the system. In that same period, the Bank started the remuneration of overnight deposits, the interest rate of which became the floor of an interest rate corridor whilst the overnight lending rate served as its ceiling. Following such developments, an increase in the volume of liquidity absorbed from the system was observed which should contribute to the eventual dampening of the recent strong, double digits growth in credit to the private sector. In the domestic foreign exchange market, the Seychelles rupee (SCR) depreciated against both the US dollar and the euro mainly due to relatively strong demand. Key economic statistics released during the month suggest a slowdown in growth momentum compared to the previous year. Tourism, one of the main economic sectors recorded a year-on-year decline in visitor arrivals. The Seychelles Industrial Production Index (SIPI) released in August 214 by the National Bureau of Statistics (NBS), which measures the level of production in the manufacturing industry, showed a decline of 44% and 26% in June 214 from May, and compared to the same period in Tourism Visitor arrivals for August 214 stood at 2,546, a decrease of 5.2 per cent compared to the same period in 213, whilst month-on-month comparison showed an increase of 8.2 per cent. Being the traditional market leader, Europe accounted for 69 per cent of total tourists to Seychelles. The leading European markets, namely Italy and Germany had a market share of 24 per cent each. They were followed by France with 19 per cent. The growing Asian market accounted for 19 per cent of total arrivals, of which visitors from United Arab Emirates (UAE) and China amounted to 1,633 and 1,174, which represented 7.9 per cent and 5.7 per cent of market shares, respectively. On a year-to-date basis, the total number of tourists to Seychelles stood at 15,412, which was 1.1 per cent below that of last year. Notable, over the same period, the number of tourists from UAE rose by 174 per cent. 1

3 R Per cent (%) 1.2 Inflation Based on movement in the Consumer Price Index (CPI), the month under review saw a further decline in inflationary pressures. Year-on-year inflation stood at.8% compared to 1.5% in the previous month whilst Chart 1: Inflation Annualised Year-on-year the 12-month average rate went down by 2 basis points to 2.4%. The monthon-month change in the CPI was negative.1%, which was mainly driven by a decline in fish prices (-1.1 per cent), furniture and household equipment (-.9 per cent) and transport (-.2 per cent). Of note, prices for most other components of the CPI basket remained unchanged relative to the previous month. The National Bureau of Statistics (NBS) also released bulletins on selected indices in August 214, primarily the Producer Price Index for Manufacturing (PPIM) and the Seychelles Industrial Production Index (SIPI) which covered the second quarter of 214. The PPIM showed an increase of.3% and 6.3% compared to May 214 and June 213, respectively. 1.3 Exchange Rates In August 214, the Seychelles rupee traded at a monthly average of and against the US dollar and euro, respectively. This translated into depreciations of 3.3 per cent against the US dollar and 1.2 per cent relative to the euro Chart 2: Exchange Rates 11 Compared to August 213, the rupee depreciated by 5.7 per cent against the US dollar and by 5.8 per cent vis-à-vis the euro. The weakening of the local R/USD R/EUR currency was primarily due to the stronger growth in domestic demand for foreign exchange relative to supply. 2

4 Per cent (%) Per cent (%) 1.4 Foreign Exchange Transactions Gross foreign exchange purchases or supply in the domestic market as reported by authorised dealers totalled US$4 million in August 214, which was 21 per cent below that of the preceding month. Similarly, sales or demand declined to US$52 million from US$56 million in July 214. As a result, the month under review recorded a net sale of US$12 million. The majority of foreign exchange transactions were channelled through commercial banks, the latter of which accounted for 67 per cent and 72 per cent of total purchases and sales, respectively. 1.5 Interest Rates The month under review observed an increase in market interest rates in response to the tightened monetary policy stance of the Bank AugSep Oct NovDec Jan Feb Mar Apr May Jun Jul Aug Average Lending Rate The effective average lending rate went up by 41 basis points Savings Rate (secondary axis) compared to the previous month to stand at 11.82%. Consistently, the average savings deposit rate increased to 1.88% from 1.2% in July 214. As a result, the interest rate spread the difference between the average lending rate and the savings rate stood at 9.94%, the lowest since May 211. The average interest rate on fixed-term rupee deposits rose to 2.58% from 2.45% in July 214. This followed an increase in yield across all maturity profiles, with the most significant being 27 basis points recorded in the category above 6 months to 12 months. Chart 3: Interest Rates As for the yield on short-term government securities, an overall increase was consistently observed across all three available maturities. The yield on the 91-day, 182-day and 365-day T-bills stood at 3.8%, 3.54% and 4.% compared to 1.75%, 1.86% and 2.5% in July

5 R (million) Change (per cent) R (million) 1.6 Monetary Aggregates Reserve Money 1 The reserve money target for the third quarter of 214 is set at an average of R2,642 million, with the upper and lower bounds at R2,721 million and R2,563 million, respectively. 2,775 2,725 2,675 2,625 Chart 4: Quarterly Average Reserve Money As at the end of August 214, the actual average stock of reserve money stood at R2,59 million or 1. per cent below the lower bound. 2,575 2,525 1-Aug 6-Aug 11-Aug 16-Aug 21-Aug 26-Aug Quarterly Average Reserve Money Upper bound Lower bound Money Supply The aggregated net foreign assets (NFA) value of the Central Bank and that of Other Depository Corporations (ODCs) rose by 3.9 per cent in August 214 relative to the preceding month to stand at R8,162 million. The growth resulted from a Chart 5: Money Supply 4.2 per cent and 3.3 per cent increase 1. 1, in the position of the Bank and ODCs, 8, 5. 6,. 4, 2, -5. AugSep Oct NovDecJan FebMar AprMayJun Jul Aug Money Supply, M3 Money Supply, M2 Money Supply, M1 m-m Change - M3 m-m Change - M2 m-m Change - M1 correspondingly. Consistently, domestic assets went up by.3 per cent, to stand at R5,849 million, mostly driven by a 2.9 per cent increase in claims on the private sector. Broad money, M3, stood at R1,34 million, representing a growth of 1.9 per cent compared to July 214. The rise in M3 was primarily driven by an increase in foreign currency deposits by 8. per cent in rupee terms and by 2.5 per cent in US dollar terms. 1 Reserve money consists of currency in circulation and depository corporations reserves at the Central Bank. Under the adopted monetary targeting framework, the Central Bank has to ensure the average reserve money level does not exceed a predetermined ceiling over a quarter. 4

6 R (million) M2 contracted by 1.3 per cent as a result of a 3.6 per cent decline in M1. On the other hand, quasi money the other component of M2 grew by 1.1 per cent, following an expansion of 2. per cent in fixed-term rupee deposits and growth of.5 per cent in savings deposits. The reduction in M1 was triggered by an 18 per cent decline in transferable deposits of public entities. Relative to August 213, M3 grew by 19 per cent attributed to growth across all of the main components of money supply. The largest increase was recorded in transferable deposits of public entities by 37 per cent and foreign currency deposits by 29 per cent. 1.7 Credit At the end of the month under review, the stock of outstanding credit stood at R7,52 million, which was a growth of.5 per cent compared to July 214. The overall expansion in credit was due to an increase in outstanding loans to the private sector. 8,5 7,5 6,5 5,5 4,5 3,5 2,5 Chart 6: Credit Claims on government fell by 2.1 per cent to R3,419 million whilst loans extended to public non-financial sector declined by.5 per cent to R269 million. 1,5 Government Public Non-Financial Sector Private sector On a year-on-year basis, credit to the private sector grew by 16 per cent. The allocations of such credit were mainly to the categories private household (2 per cent), tourism (13 per cent) and real estate (13 per cent). 5

7 R (million) US$ (million) Months 1.8 International Reserves Chart 7: International Reserves Gross Foreign Reserves Import Cover (Secondary Axis) As at the end of August 214, gross international reserves declined from US$475 million in the previous month to US$472 million. The latter was equivalent to 4.1 months of total imports of goods and services. 2 Net international reserves stood at US$374 million, which was US$24 million above the Q3 target. 1.9 Fiscal Outcome The primary balance recorded a surplus of R72 million (.4 per cent of GDP) for August 214 compared to the budgeted R6 million. 5 4 Chart 8: Fiscal Outcome, August 214 Total expenditure and net lending stood at R387 million, which was 16 per cent below 3 its budget. Current outlays amounted to 2 R342 million as opposed to the budgeted R38 million. Similarly, capital expenses 1 were lower than expected by 41 per cent, standing at R42 million. Most savings in Total Revenue Total Expenditure Primary Balance Overall Balance capital spending were made in funds Budget Actual allocated to development grants and compensation for land acquisition by 87 per cent and 69 per cent, respectively. Total revenue (excluding grants of R6.7 million) amounted to R441 million. This was 4.1 per cent below the forecast, following a shortfall in both tax and non-tax receipts. Tax revenue was lower than budgeted by 1.2 per cent, of which the main underperforming category was other tax which was below budget by 66 per cent. With regards to tax receipts, it was 29 per cent less than expected, with the only component above forecast being dividends income by 13 per cent. 2 The latest forecasted imports of goods and services 6

8 R (million) % of GDP 1.1 Public Debt As at the end of August 214, the aggregated stock of public debt stood at R11,12 million (US$856 million), equivalent to 61 per cent of GDP. In rupee terms, this represented an increase of R24 million (2.2 per cent) relative to the previous month primarily due to the depreciation of the local currency vis-à-vis the US dollar given that in US dollar terms, total public debt fell US$27 million on a month-on-month basis. The stock of external debt stood at US$461 million (R5,988 million), a.6 per cent decrease and 4.8 per cent increase in US dollar and in rupee terms respectively. As stated above, the relatively significant Chart 9: Public Debt 12, 1 9 1, 8 8, 7 6 6, 5 4, 4 3 2, 2 AugSep Oct NovDec Jan Feb Mar Apr MayJun Jul Aug Domestic debt External debt Total debt Domestic debt External debt Total debt increase in rupee terms was due to domestic exchange rate movements. With regards to domestic debt, this declined from R5,148 million to R5,114 million primarily as a result of increased maturities relative to issuance of government securities during the month. Compared to the same period in 213, the total stock of public debt increased by R885 million (8.7 per cent) in rupee terms primarily due to the weaker domestic currency. Nonetheless, consistent with the government s debt-reduction strategy, as a percentage of GDP, the stock of outstanding public debt declined by 7. percentage points year-on-year. 7

9 2. Money Market Developments 2.1 Open Market Operations In August 214, the Bank intervened in the money market to withdraw liquidity worth R1,717 million through the Deposit Auction Arrangement (DAA). These were of maturities of 7-days, 14-days, 21-days and 28-days. 2.2 Money Market Interest Rates (DAA) As for the applicable interest rates, these were fixed effective August 1, 214 as per the table below, and remained unchanged throughout the month. Table 1: Weekly Summary of DAA Interest Rates 3 Maturity Interest rates (% per (days) annum) Latest applicable rates 8

10 R (million) R (million) 3. Banking Development 3.1 Central Bank Statement of Financial Position As at the end of August 214, the Bank s total assets stood at R7,423 million, total liabilities amounted to R6,742 million whilst total equity was R681 million. These represented increases of 3.5 per cent.7 per cent and of 44 per cent respectively, when compared to the previous month s figures Movements in Assets The total assets of the Bank were R252 million higher than what was recorded in the preceding month when it stood at R7,171 million. The increase was primarily due to a growth of R379 million in cash and 3, 2,5 2, 1,5 1, 5 balances and placements. Chart 1: Movements in Assets Cash and cash equivalents Other balances and placements 31 July August Other assets cash equivalents and R8.8 million in other assets. This was primarily attributed to increased placements in investments of short-term maturities and the significantly higher clearing house position than in the previous month. Additionally, the period s depreciation of the domestic currency positively affected balances of foreign currency denominated assets in rupee terms. The increase in total assets was partly offset by a decrease of R141 million in other Movements in Liabilities Total liabilities stood at R6,742 million, which was a slight increase of.7 per cent from end of July 214. This was mainly due to a growth of R249 million under open market operations following an increase in the volume of interventions in the money market, and associated withdrawal of more liquidity from the system during the period under review. The category deposit from banks decreased by R247 million. A monthly increase of R23 million was 1,8 1,6 1,4 1,2 1, Chart 11: Movements in Liabilities IMF obligations Open Market Operations 31 July August 214 Deposits from banks 9

11 Value in R (million) R (million) also observed in the balance of IMF obligations relative to the previous month. This can be attributed to the depreciation of the Seychelles rupee during the period Equity The value of total equity rose by R27 million due to growth of 116 per cent in the balance under revaluation reserve. Its end of August 214 figure of R383 million was an increase of R26 million from its Chart 12: Movements in Equity end-july position of R177 million. This change was again attributed to the 4 period s depreciation of the Seychelles 35 rupee Revaluation reserve Retained earnings The value of retained earnings increased by R1.3 million during the period under review. 31 July August Currency in circulation At the end of August 214, the stock of currency in circulation stood at R912 million or 1.6 per cent higher than in the previous month. The change was mainly due to a 1.7 per cent growth in the balance of banknotes. The highest increase was recorded in the denomination R1 and R25 and these were by 3.5 and 2.2 per cent respectively. Chart 13: Value of Banknotes in Circulation per Denomination A growth was also recorded in the volume of coins in circulation and this was by.3 per cent. In terms of share of total currency in circulation, the R5 banknote remained dominant at 69 per cent whilst the 1 cent coins had the lowest share at less than.1 per cent R5 R1 R5 R25 R1 31 July August 214 1

12 Value in R (million) Chart 14: Value of Coins in Circulation per Denomination R5 R1 R.25 R.1 R.5 R.1 31 July August 214 Chart 15: Percentage share of total value of currency in circulation for July 214 R1 2.27% R % R5 1.72% R1 1.56% R.25.75% R.1.21% R.5.13% R.1.1% R5 2.59% R1 2.9% R5 69.% Chart 16 : Percentage share of total value of currency in circulation for August 214 R1 2.28% R25 1.7% R5 1.7% R1 1.56% R.25.75% R.1.21% R.5.13% R.1.1% R5 2.56% R1 2.45% R % 11

13 (R Million) Number of cheques 4. Payment Systems 4.1 Cheques The Bank s effort to facilitate electronic cheque clearing and to ensure the attainment of a critical mass of Magnetic Ink Character Recognition (MICR) code line compliant cheques in circulation remained ongoing. Approximately 2. per cent of non-standard cheques were processed in the cheque clearing system in August 214, which was similar to the previous month s figure. The total number of cheques presented amounted to 62,824 which was a daily average of 3,141 cheques over 2 working days. Chart 17: Total number of cheques presented in the cheque clearing system 8, 7, 6, 5, 2,2 2,1 2, 1,9 4, This represented a decrease of 15 per 1,8 3, 1,7 cent compared to the statistics for July 2, 1,6 214 and 3.8 per cent less than 1, 1,5 reported in August ,4 The total value of these cheques Number of cheques Number of high value cheques (sec. axis) amounted to R1,233 million, representing a daily average of R62 million and a decrease of 18 per cent compared to the preceding month. Chart 18: Total value of cheques presented in the cheque clearing system Value of all cheques Value of high value cheques (sec. axis) In total, 1,788 cheques of high value (R1, and above) were processed during August 214, which was 16 per cent less than the volume recorded in July 214. The total value of these cheques amounted to R773 million at 19 per cent less than in the preceding month. The period s decline in both volume and value of presented cheques was an expected, seasonal development. 12

14 Number of transactions (R Millions) Number of messages (R Million) 4.2 SWIFT In August 214, the volume of outgoing SWIFT messages passing through the CBSITS fell from 1,151 to 7,95 messages or by 22 per cent from the previous month. 12, Chart 19: Total number and value of SWIFT messages sent from CBS to participants 2,5 In terms of total value, it was a decrease of 8.2 per cent compared to July 214 and of 42 per cent in comparison to the same period in 213. During the period under review, commercial banks reported a noticeable decrease in the number of transactions which was consistent with 1, 8, 6, 4, 2, 2, 1,5 1, 5 the tightened monetary policy stance of the Central Bank. No. of outgoing SWIFT messages Value of outgoing SWIFT messages (sec. axis) 4.3 Seychelles Electronic Funds Transfer (SEFT) A total of 3,478 transactions were processed through the SEFT during August 214 which was 12 per cent less than in the previous month. 6, 5, 4, 3, 2, 1, Chart 2: Total number and value of SEFT transactions processed Aug Oct Dec Feb Apr Jun Aug A 42 per cent decrease was also recorded in value terms, namely from R382 million in July to R221 million in August 214. No of SEFT Transaction Value of SEFT Transaction 4.4 Debit cards in circulation The total number of debit cards issued stood at 61,564 as at the end of August 214, which was an increase of 5.2 per cent compared to the previous month. Notable is the growing trend whereby the general public were opening more basic payment accounts and using debit cards for online shopping purposes. 13

15 Number of POS transactions ('') Value of POS transactions (R million) 4.5 Automated Teller Machines (ATMs) The total number of ATMs in the country increased from 45 in July 214 to 47 as at the end of August 214 following the installation of two new ATMs one at the Unity House and the other at Beau Vallon by Seychelles Commercial Bank. This implies a further increase in geographical coverage across Mahe thereby decentralising customer access to such facilities. In terms of the number and value of ATM transactions, the month of August 214 recorded a total of 168,255 ATM transactions which was a slight decrease of.2 per cent compared to July 214. Consistently, the total value of ATM transactions fell by 1. per cent to R196 million. 4.6 Point of Sales (POS) The total number of POS terminals stood at 1,942 as the end of August 214. This represented an increase of 1. per cent compared to the previous month and thus highlighting the continuous growth in this mode of accepting payments in the country. During the period under review, the total number and value of POS transactions increased by 2.4 per cent and 18 per cent respectively. Chart 21: Total number and value of POS Transactions 12, 24 11, 22 1, 2 9, 18 8, 7, 6, 5, No. of POS transactions Value of pos transactions 14

16 R (million) 5. Key Financial Sector Developments General Financial Soundness Indicators Chart 22: General Financial Soundness Indicators 2, 17,5 15, 12,5 1, 7,5 5, 2,5 - Total deposit liabilities Total assets Loans & advances Equity Capital previous month. Contrary to the previous month, growths were observed in all of the general soundness indicators during the month of August 214. Total assets increased by R122 million from July to August 214, to settle at R17,287 million. This growth was mainly attributed to a rise in the industry s value of loans and advances observed across all banks. In total, loans and advances rose by R14 million or by 2.2 per cent from the The industry s deposit liabilities increased by R197 million to settle at R14,737 million. The main driver behind this movement was growth of R144 million in checkable deposits. To note, the increases were mostly recorded in deposits denominated in foreign currency which was also the source of funding for other loans and advances 5. Similar to the previous month, a rise in the balance of outstanding loans and advances were observed across all loan categories. The most notable was recorded in other loans and advances by R49 million which was followed by an increase in overdraft facilities by R3 million. At the end of the review period, the industry s loans and advances stood at R4,75 million. As for the industry s equity capital, this went up by R35 million from July to August 214, driven by an increase in profits. On a year-on-year basis, the industry observed increases in its equity capital (1.3 per cent), loans and advances (1 per cent) and total deposit liabilities (less than.1 per cent), whilst total assets declined by less than.1 per cent. 4 The Statistics in Section 5 are compiled for prudential purposes and therefore follow different conventions to that in Section 1. 5 Constitutes mostly of loans denominated in foreign currency 15

17 R (million) Percentage (%) Percentage (%) 5.2 Capital Adequacy Indicators The Capital Adequacy Regulations, 21 stipulates a minimum Capital Adequacy Ratio of 12 per cent. As illustrated in Chart 23, the industry s ratio remained well above the minimum requirement during the review period. Chart 23: Capital Adequacy Indicators Nonetheless, the capital adequacy ratio decreased by.2 percentage points to settle at 25 per cent in the month under 2. review. 15. This was brought about by increases in risk weighted assets 1. following the growth in loans and 5. advances.. With regard to the net tangible Regulatory capital to risk weighted assets capitalisation ratio, this rose by.1 Net tangible capitalization ratio percentage points from 9.5 per cent in July 214. The ratio was above the recommended 6. per cent which shows that the industry was well capitalised and well cushioned in case of unexpected future losses. 5.3 Asset Quality Indicators Similar to the previous month, in August 214, increases were recorded in the industry s non-performing loans 6 (NPLs) and specific provisions 7. NPLs grew by R13 million, driven by growths in loans classified in the doubtful by R12 million and in the loss category by R7.1 million. The rise was partly mitigated by the decrease of R6.7 million in loans classified in the substandard category. As for the industry s specific Chart 24: Asset Quality Indicators AugSep Oct NovDec Jan FebMar AprMayJun Jul Aug Non performing loans (NPLs) (LHS) Specific Provisions (LHS) Non-performing loans to gross loans (RHS) Provision as % of non-performing loans (RHS) Comprise of credits classified in the substandard, doubtful and loss category in accordance with the Credit Classification and Provisioning Regulations 21, as amended in Specific provisions are provisions made on special mention loans and NPLs. 16

18 Percentage (%) provisions, this rose by R4.6 million and at a faster pace compared to R1.6 million registered in the previous month. The most notable growth was recorded in provisions on loans in the loss category by R4.4 million. The industry s ratio of NPLs to gross loans increased by.1 percentage points to settle at 7.5 per cent from July 214 to August 214 which was driven by the growth in NPLs. In consideration of the earliermentioned rise in NPLs, provisions as a percentage of NPLs declined by.5 percentage points to settle at 48 per cent. 5.4 Earnings and Other Indicators Further improvements were observed in the industry s Return on Assets (ROA) and Return on Equity (ROE) in the month under review. The ROA and ROE increased to 3.1 per cent and 33 per cent respectively. This Chart 25: Earnings and Other Indicators Return on assets Return on equity Broad liquid assets to total liabilities Net open position to capital was mainly attributed to a decline in head office charges at one bank. No major changes were observed in the industry s ratio of broad liquid assets 8 to total liabilities. The ratio was 64 per cent, at.2 per cent lower than in the previous month. This shows that the industry s broad liquid assets could match 64 per cent of its total liabilities 9 as at the end of the review period. The industry s net open position to capital ratio stood at 1.1 per cent as at 31 st August 214. The total long and short position as a percentage of total capital was 2.5 per cent and 1.4 per cent respectively, which was within the 3 per cent limit as prescribed by the Foreign Currency Exposure Regulations, Consist of cash, balances with CBS, balances with other banks and Government securities. 9 This is in line with the Liquidity Risk Management Regulations, 29 which stipulates that a bank shall maintain liquid assets in an amount which shall not, as a daily average each month, be less than 2 per cent of the bank's total liabilities. 17

19 Summary of Financial Indicators (Ratios) Figures are in R Aug-13 Sep-13 Oct-13 Nov-13 Dec-13 Jan-14 Feb-14 Mar-14 Apr-14 May-14 Jun-14 Jul-14 Aug-14 Total deposits liabilities 14,731,33 14,861,996 14,744,73 14,78,65 14,66,44 14,848,18 15,13,837 15,788,596 15,288,48 14,718,85 14,72,198 14,54,333 14,737,362 Total assets 17,295,576 17,499,36 17,331,212 17,412,637 17,246,999 17,474,542 17,732,67 18,423,562 17,93,481 17,273,8 17,299,399 17,165,68 17,287,375 Loans & advances 4,313,278 4,369,173 4,398,617 4,417,315 4,384,31 4,369,7 4,415,733 4,433,993 4,454,954 4,486,352 4,584,491 4,645,789 4,749,58 Equity Capital 1,621,757 1,652,724 1,679,765 1,71,272 1,671,161 1,78,249 1,742,145 1,749,244 1,643,392 1,568,819 1,597,47 1,66,919 1,642,231 Non-performing loans (NPLs), gross 42,726 41,1 42,829 44, ,5 478, , , , , , ,19 353,881 Actual Provisions (Specific) 15,17 15,148 15,77 16, , , , ,17 157, ,72 164, ,28 17,62 Figures are in percentage (%) Aug-13 Sep-13 Oct-13 Nov-13 Dec-13 Jan-14 Feb-14 Mar-14 Apr-14 May-14 Jun-14 Jul-14 Aug-14 Capital Adequacy Regulatory capital to risk weighted assets Net tangible capitalization ratio Asset Quality Non-performing loans to gross loans Provision as % of non-performing loans Earnings & Profitability Return on assets Return on equity Liquidity Broad liquid assets to total liabilities Sensitivity to Market Risk Total long position in foreign exchange to capital Total short position in foreign exchange to capital Net open position to capital