Moody’s praises banks for their high liquidity. Deposits are growth driver, but pressure on profitability, credits, and asset quality lead to negative outlook

The banking system's funding strengths are expected to remain, along with possible improvements in capitalization, said Moody's Investors Service in a report published yesterday.

The rating agency said banks will continue to grow their stable deposit funding bases over the outlook period. Customer deposits represent more than 80 percent of system liabilities and are supported by inflows of remittances from the diaspora, which is equivalent to 15-20 percent of the Gross Domestic Product (G...

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