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Total loans increased 1 percent in July

Radio & TV Tonga, Nuku’alofa, 11/10/2017

 

The total loans to deposit ratio increased slightly from 75 to 76 percent last month.

 

It reflects a point 6 of a percent growth in total loans outweighing the total deposits.

 

The ratio continued to remain below 80% loan to deposit ratio target which indicates excess liquidity in the banking system.

 

The National Reserve Bank of Tonga said, the banking system remained sound maintaining strong capital position supported by a comfortable profitability with low on non-performing loans.

 

The liquidity in the banking system continued to fall over July to 278 million pa’anga which reflects the issuing of the new notes to the banks during the King’s birthday and national events in July.

 

This coincides with the Bank’s initiative to improve the quality of the notes in circulation.

 

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