The capital adequacy indicator for the local banking system increased to 13.51% at midyear, from 13.16% at end of March and 13.76% from end of 2008, as the central bank requested a minim ratio of 8% and has recently recommended to banks a capital adequacy ratio of 10%.

The leverage effect, which represents the ratio between tier1 capital and total assets, fell slightly to 6.92 from 6.81 at the end of March, after reaching 8.13 at the end of last year.

The capital adequacy ratio and leverage effect comprise only commercial banks within Creditcoop without the 11 subsidiaries of foreign banks.

The loan arrears and doubtful loans are now accounting for 1.03% of the banks’ aggregated loan book at the end of H1, from 0.66% in Q1, and 0.32% at the end of 2008.

The total return on assets turned positive at the end of June, to 0.05% from -0.25% at the end of March, and 1.56 at the end of Last year.

The return on equity increased to 0.64% in June, from -2.9% at end March, after 17.04 recorded last year.