A slide in import bills associated with commodity groups, such as, petroleum products, fertiliser, paper and paper products, and industrial boilers and equipment, explained this outturn. During the same quarter, the services and income account deficits narrowed by 5.7% and 1.5% to US $ million and US $ million, respectively. The capital and financial account surplus increased to US $ million in the third quarter 2010 from US $ million the previous quarter. This was largely due to an increase in project grants coupled with a reduction in portfolio and other investment outflows. Developments in the financial sector The overall financial condition of the banking sector for the quarter ended September 2010 was satisfactory. On aggregate, the banking sector was adequately capitalised and the  10  BIS Review 148/2010  liquidity levels remained high. The sector’s profit after tax also improved, although the asset quality modestly deteriorated. The overall financial condition and performance of the Non Bank Financial Institutions sector was rated fair during the quarter under review. The sector was adequately capitalised with “fair” asset quality while earnings performance was rated “satisfactory”. However, the leasing subsector reported regulatory capital deficiencies and unsatisfactory earnings performance. During the quarter under review the Financial Sector Development Plan (FSDP) Implementation and FSDP Steering Committees approved the work plans and budgets of the six FSDP Working Groups for the period 2010 to 2012. During the quarter under review, the FinScope 2009 Consumer Survey report was launched to the public in Lusaka and Ndola.

This outturn reflected continued improvement in hydro-geological conditions and uninterrupted mining operations in the country resulting in increased ore extraction at both open pit and deep underground mines. On a year- to-date basis, copper output at 625,844.1 mt was 20.9% higher than the quantity produced in the corresponding period of 2009. 1  2  Previous quarter. BIS Review 148/2010  Cobalt output also increased by 16.1% to 2,349.41 mt during the third quarter of 2010 from 2,023.84 mt recorded in the previous quarter. The improvement in output mainly reflects continued benefits arising from the resumption of production at Konkola Copper Mines and Chambishi Metals Plc coupled with improved hydro-geological conditions. Further, cobalt output on a year-to-date basis at 6,362.2 mt was 59.7% higher than the 3,982.9 mt of cobalt produced in the corresponding period of 2009. Cement output 2 increased by 26.1% to 234,240.7 mt in the third quarter of 2010 from 185,702.0 mt during the previous quarter. However, on a year-to-date basis, output of cement at 577,130 mt was 4.0% lower than the 601,432.5 mt produced in the same period of 2009. During the quarter under review, international arrivals at the country’s four international airports 3 were 124,244 passengers compared with 105,163 passengers in the second quarter of 2010. This was 20.7% higher than 102,918 passengers recorded during the same quarter in 2009. Foreign exchange market The slow pace of economic recovery in the United States continued to cast a dark shadow on the US dollar, the world’s most traded currency.