The banking industry entered the current financial year both sturdy and unsettled. Profits were strong, loan books looked clean and capital buffers respectable. Yet, shallow financial depth, stubborn inflation, and heavy government exposure to budget deficit darkened the horizon. The credit engine was revving; whether it powers growth or overheats would depend on deft regulation, disciplined fiscal policy, and the banks’ ability to adapt faster than risks accumulate. 

Commercial banks survived the financial year 2023/24 with their engines roaring and warning lights glowing on the dash. Their profits were cushioned by growing capital, at least on paper, several edging to the regulatory bar set for next year.