REGISTRAR OF FINANCIAL INSTITUTIONS FINANCIAL INSTITUTIONS SUPERVISION ANNUAL REPORT 2017 TABLE OF CONTENTS LIST OF TABLES...............................................................................................................................3 LIST OF FIGURES.............................................................................................................................4 REGISTRAR’S FOREWORD.............................................................................................................5 EXECUTIVE SUMMARY...................................................................................................................8 1.0 INTRODUCTION........................................................................................................................10 2.0 THE BANKING SECTOR...........................................................................................................12 2.1 Sector Overview..............................................................................................................12 2.2 Structure of the Banking Sector.......................................................................................12 2.3 Changes in Assets and Liabilities....................................................................................13 2.4 Capital Adequacy............................................................................................................16 2.5 Asset Quality...................................................................................................................17 2.6 Earnings..........................................................................................................................17 2.7 Liquidity............................................................................................................................18 2.8 On-Site Examinations......................................................................................................18 3.0 CAPITAL MARKETS.................................................................................................................19 3.1 Sector Overview..............................................................................................................19 3.2 The Stock Market.............................................................................................................19 3.3 Stock Brokerage..............................................................................................................20 3.4 Funds Management.........................................................................................................21 3.5 Unit Trust Operations.......................................................................................................22 3.6 On-Site Examinations......................................................................................................23 4.0 PENSION SECTOR...................................................................................................................24 4.1 Sector Overview..............................................................................................................24 4.2 Pension Sector Assets.....................................................................................................24 4.3 Investment Performance..................................................................................................24 4.4 Asset Portfolio Mix..........................................................................................................24 4.5 Pension Contributions.....................................................................................................25 4.6 Administration and Investment Fees...............................................................................26 4.7 Payment of Pension Benefits...........................................................................................26 4.8 On-Site Examinations......................................................................................................26 5.0 GENERAL INSURANCE...........................................................................................................27 5.1 Sector Overview..............................................................................................................27 5.2 Premium Income..............................................................................................................27 5.3 Claims Experience..........................................................................................................28 5.4 Underwriting and Operating Performance........................................................................29 5.5 Assets and Liabilities.......................................................................................................30 5.6 Liquidity...........................................................................................................................31 5.7 Capital and Solvency.......................................................................................................32 5.8 Reinsurance....................................................................................................................32 5.9 Insurance Brokers............................................................................................................33 5.10 On-Site Examinations......................................................................................................34 6.0 LIFE INSURANCE.....................................................................................................................35 Financial Institutions Supervision • Annual Report | 2017 6.1 Sector Overview...............................................................................................................35 6.2 Assets and Liabilities.......................................................................................................35 6.3 Profitability.......................................................................................................................36 6.4 Premiums.........................................................................................................................36 6.5 Reinsurance.....................................................................................................................37 6.6 Underwriting Experience..................................................................................................37 6.7 On-Site Examinations......................................................................................................38 7.0 MICROFINANCE SECTOR........................................................................................................39 7.1 Sector Overview..............................................................................................................39 7.2 DEPOSIT TAKING MICROFINANCE..............................................................................39 7.2.1 Assets and Liabilities....................................................................................................39 7.2.2 Capital Adequacy.........................................................................................................40 7.2.3 Asset Quality................................................................................................................40 7.2.4 Earnings & Expenses....................................................................................................41 7.2.5 Liquidity........................................................................................................................41 7.2.6 Membership.................................................................................................................41 7.3 NON-DEPOSIT TAKING MICROFINANCE.....................................................................41 7.3.1 Assets and Liabilities....................................................................................................41 7.3.2 Capital Adequacy.........................................................................................................42 7.3.3 Asset Quality................................................................................................................42 7.3.4 Profitability....................................................................................................................42 7.3.5 Membership.................................................................................................................43 7.3.6 On-Site Examinations...................................................................................................43 7.4 Financial Cooperative......................................................................................................43 7.4.1 Overview......................................................................................................................43 7.4.2 Membership.................................................................................................................43 7.4.3 Assets and Liabilities....................................................................................................44 7.4.4 Capital Adequacy.........................................................................................................44 7.4.5 Financial Structure.......................................................................................................45 7.4.6 Asset Quality................................................................................................................46