The governor of the Royal Monetary Authority, Daw Tenzin, assures the people that the banks are safe. “The banks are well capitalised and regulated under vigorous prudential norms,” reads a press release from the governor.
The banking sector had faced liquidity constraints in the recent past. There has been a significant improvement over the course of time. “The Statutory Liquidity Ratio (SLR) stood at 33 percent by December 2012,” states the press release. It says the SLR is well above the minimum regulatory SLR requirement of 20 percent.
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Being hugely import and aid driven, our economy will continue to face many challenges. However, the RMA, together with fiscal and other relevant authorities will introduce reform packages towards the third quarter of 2013 to address the challenges.”
Daw Tenzin
Governor,
RMA
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“We would like to allay any concerns regarding our banking system and inform the general public that the asset quality and capital size of our banks have improved significantly.”
The release also states the banking system is sound and remains well-monitored by the RMA.
However, the governor says Bhutan will have to continue to rely on short-term borrowings.
The Government and the RMA have made arrangements with the Government and Reserve Bank of India for cheaper credit through the credit line and the currency swap amounting to close to Rs.10 billion.
“These arrangements, in addition to being cheaper, will tide us through to the middle of the year until our hydropower inflows pick up,” said Daw Tenzin.
