Question 3
(a)	Explain the capital position of the banking sector in the first half of 2021. marks)
(b)	Give your comments how capital position facilitates financial stability for the first half of 2021. (10 marks)
	(Total: 20 marks)

Question 4
(a)	Discuss THREE (3) measures taken by banking institutions in adapting to the challenges in credit risk assessment to ensure adequacy of provisions against elevated credit risks due to the pandemic. (10 marks)
(b)	Assess the asset quality outlook for the first half of 2021. Relate your assessment to the impairment, provision and management outlay of the bank's assets. (10 marks)
(c)	Describe the potential impacts of extending the automatic loan moratorium for another 6 months on the following: - (i) ONE (1) impact on the banking sectors asset quality (ii) ONE (1) impact on the banking sectors liquidity. (10 marks)
	(Total: 30 marks)