It takes two to tango
The indicators of the banking sector were relatively stable and growing. The banking sector’s total assets increased by 13 percent compared to last year’s period. Despite the accelerating recovery of economic sectors, non-performing loans to businesses remain high.
The easing of anti-pandemic policies in the southern neighbor and the improvement of the border customs situation significantly impacted the economic expansion by 7.9 percent, accelerating the recovery of the mining and transportation sectors. Also, supply and logistics problems are gradually disappearing and the price level of consumer goods in our country is decreasing, the impact of the increase in the price of goods on the world market is still high.
In our country, the banking sector is the only sector that supports the economic sectors. If we do not continue to attract foreign investment and increase the competitiveness of other sectors, then the economic structure of the mining-related sector recovers when the economy recovers, and the economic structure that falls with it will bring more risks.
HIGHLIGHTED CHANGES AND FUTURE TRENDS IN THE BANKING SECTOR IN FIRST QUARTER OF 2023
- Banks are providing loans to support food and agricultural production with their own resources.
- The credit quality of banks is at a normal level.
- IPO of 5 systemically influential banks was successfully completed. And their financial performance is relatively good.
- The gradual elimination of transport logistics difficulties has accelerated the recovery of economic sectors.
- The price increase of goods worldwide is the main reason for the increase in the price of the main products of our country.
- Inflation is slowing down, exchange rates are stabilizing, and economic uncertainty is decreasing.
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