Banking system at the end of June 2023 remained well-capitalized

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The banking system at the end of June 2023 remained well-capitalized with capital adequacy

ratio rising to 33.2 percent from 28.8 percent in June 2022; this was well above the 15.0

percent minimum prudential requirement.

This is according to the latest Central Bank economic report. Its liquidity was also more than adequate at 36.6 percent of total domestic deposits in the month under review and was well above its minimum prudential requirement of 10.0 percent.

The non-performing loans as of June 2023 stood at 4.7 percent of total loans, which was higher than 4.6 percent in June 2022. 

However, the provisioning for doubtful loans to total NPLs increased to 179.7 percent in June 2023 from 168.3 percent in June last year.

This high provisioning level covered (110.4 percent) the total NPLs in June 2023, significantly increasing from 96.7 percent at the end of June 2022. The imported (component) inflation dropped to 14.5 percent from 15.0 percent as of the last month.

The Central Bank economic report states that in the Samoa Bureau of Statistics (SBS) monthly survey, the average volume of agricultural produce supplied to the local markets from twelve to June 2023 was 0.7 percent lower over the same period last year.

This was mainly due to reductions in average. 

Effective April 2019, the Samoa Bureau of Statistics (SBS) has published the rebased national accounts data with the new base year 2013 (2013=100), starting with the December 2018 quarter.

At purchaser prices including taxes less subsidies; at purchaser prices including taxes less subsidies, supplies of stable food crops such as ta’amu, banana, and pumpkin. As a result of a shortage of agricultural products, the average price index rose by 38.0 percent.