To better reflect the impact of the pandemic on the balance sheet performance of banks in the 2022 ranking of strongest banks, specific consideration was given to the effect of banks’ digitalisation and social distancing measures on cost-to-income ratio (CIR) and cost of funding, as well as the impact of state-supported credit relief and repayment moratorium on asset quality, and the consequence of historically low interest rates on net interest margin, income and profitability. Analysis shows that loan loss reserves to gross non-performing loans ratio, assets to gross domestic product (GDP) ratio, capital adequacy ratio and CIR and were significantly correlated to the overall strength score.
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