BMA Issues Quarterly Banking Digest
The Bermuda Monetary Authority published its latest quarterly banking digest for the island last week [Mar. 14] and the new statistics show the aggregate risk asset ratio of Bermuda banks remained flat at 23.2% during the quarter as lower risk-weighted assets — down by 3.8% — offset an increase in leverage.
The digest also reported that valance sheets have returned to positive growth.
Total assets rose by 6.0% for the quarter resulting from increases in investment activity — up 38.1% during the last quarter and 42.2% year-on-year — which is mainly funded by increases in demand deposits (up 17.9%).
Although customer deposits increased during the quarter, the funding gap in Bermuda dollars has widened.
The Bermuda dollar loan-to-deposit ratio increased to 149.5% — up from 145.8% in Q3 and 139.7% a year earlier — due to a higher FX share (84.3%) of total deposits (up from 82.9% in Q3 2011) as a result of a surge in US dollar demand deposits (up by 30.1%) and declines in FX time deposits (down 11.2%).
The full report is below, click ‘Fullscreen’ for greater clarity:
