Banking system experiences let-up in credit risk build-up.

Byline: RECORDER REPORT

The banking system experienced some let-up in the build-up of credit risk, which has significantly increased over the last six quarters or so, as the growth in banking system''s NPLs substantially pacified, according to State Bank of Pakistan''s (SBP) Quarterly Performance Review report of the Banking System.

"However, in the coming quarters, the heightened credit risk and increased portfolio of infected loans will remain the major challenge for the banking system. Nevertheless, the results of stress tests reflect system''s strong capacity to endure extraordinary shocks in major risk factors and avert the emergence of any systemic risk," it …