Commercial Banks in Solomon Islands are safe: CBSI Governor

The 2005 Annual Report of the Central Bank of Solomon Islands, CBSI, says the commercial banks in the country remain safe, sound and profitable.

CBSI Governor Rick Hou in a speech to launch the report yesterday said all the financial soundness indicators such as asset quality, capital adequacy, earnings, profitability and liquidity in 2005 all point to a strong banking system in the country.

Mr Hou said the banks recorded a 28 percent growth to 990 million dollars in their combined balance sheet during the year, largely due to solid growth in loans and advances and call deposits with the Central Bank.

He said commercial bank lending to the private sector grew by 63 percent to 389 million dollars in 2005.

Mr Hou said the bulk of this lending went into the wholesale/retail distribution sector and personal sector.

He said this trend appears to continue, where already, in the first four months of 2006 lending to the private sector grew by 11 percent.

News source: SIBC Online (http://www.sibconline.com.sb/main.asp