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Performance review of the banking system.
SBP's performance review of the banking system for the quarter ended 31st December, 2008 contains a comprehensive assessment of the financial sector of the economy including several challenges confronting the banking industry of the country.
The asset base of the banking system grew by 2.6 percent during the quarter and this was well supplemented by 3.6 percent growth in deposits and seven percent rise in shareholders' equity. However, the liquidity profile of the banking system remained constrained for most of the quarter and credit risk heightened in line with deterioration in macro-economic indicators.
Non-performing loans (NPLs) of the banking system rose from Rs 278 billion at the end of September to Rs 313 billion by the close of December, 2008, …
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