The banking system demonstrated continued stability in the second quarter of 2025, marked by improved solvency and a record high capital adequacy ratio of 19.6%, a level unseen since 2006. This positive performance occurred amidst accelerated domestic economic growth and slowing inflation.

The quality of the loan portfolio improved, with the non-performing loan rate reaching a historical low of 2.4%. Lending to both households and businesses experienced faster growth, rising by 3.1% and 4.3% respectively on a quarterly basis, supported by eased credit standards and increased credit demand. Deposit growth also accelerated during the quarter, showing favorable trends in currency and maturity.

The National Bank Council also adopted a Sustainability Framework to systematically integrate sustainable practices into its daily operations. This framework aims to enhance energy efficiency, promote responsible resource use and green finance, reduce the carbon footprint, and increase employee awareness and capabilities in sustainable operations.

Liquidity within the banking system remained satisfactory, with liquid assets adequately covering a significant portion of short-term liabilities and household deposits. The National Bank emphasized that it will maintain a cautious approach in its monetary and macroprudential policies due to ongoing external and domestic uncertainties. Continuous monitoring of risks is deemed essential to preserve banking sector stability in the future.

The National Bank will continue to pursue initiatives aimed at promoting environmental practices, financial literacy, and responsible conduct to foster long-term economic stability and social welfare.