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Philippine banks outperformed regional peers in 2011 by 123wert sdfsf
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Philippine banks outperformed regional peers in 2011 |
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Business,Business News,Business Opportunities
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The Philippine banking sector outperformed most of its counterpartsin Southeast Asia in 2011 as resources and capital grew further andexposure to bad loans fell to its lowest in over a decade. This was according to the Bangko Sentral ng Pilipinas (BSP), whichsaid in its latest "Status of the Philippine Financial System"report that, given the favorable financial indicators they postedas of end-2011, banks in the country are expected to remain stableeven with the backdrop of a mild recession in the eurozone thisyear. "Key indicators showed further strengthening of banks' balancesheets with positive growth in assets, loans, deposits andcapital," the BSP said in the report. Data from the central bank showed that the average non-performingloan (NPL) ratio of universal and commercial banks in thePhilippines fell to the 2-per cent territory last year to matchlevels seen prior to the Asian financial crisis of 1997.
NPL ratio, a closely watched indicator, is the proportion of badloans to total outstanding loans extended by banks. Loans are described as "bad" or "soured" if these remain unpaid forat least 30 days after maturating. Moreover, the average capital adequacy ratio (CAR) of banks in thecountry stands close to 17 per cent, which is above the minimumrequirement of 10 per cent set by the BSP. A CAR of at least 8 per cent is considered comfortable underinternational standards. Meantime, the combined resources of banks in the country hit P7.61trillion (S$224.61 billion) by the end of last year, rising over 5per cent from the previous year's P7.23 trillion.
The rise in resources was driven by the increase in deposits andprofits. Combined net incomes of banks in the country amounted to P96.16billion last year, up by 15 per cent from P83.36 billion theprevious year. "Banks remained profitable and provided positive returns toshareholders on account of cost-efficient operations," the BSPsaid, noting that the indicators are better than those of otherbanking sectors in Southeast Asia. With the favorable indicators, the BSP is set to impose onPhilippine banks the stricter capitalization requirements under theBasel 3 framework starting January 2013, ahead of the 2014 scheduleto be observed by most central banks. "This places the Philippines alongside Australia, China, Hong Kongand Singapore which all have announced to adopt Basel 3 standardsearlier [than 2014]," the BSP said.
The BSP is confident the recession in the eurozone will not haveany serious impact on Philippine banks. It said that investments byPhilippine banks to euro-denominated assets account for just 1.1per cent of their total assets. The crisis in the West has raised concerns that banks based theremay dispose of some of their assets-such as portfolio instrumentspurchased from and subsidiaries located in emerging Asianmarkets-to shore up capital. I am a professional writer from Consumer Electronics, which contains a great deal of information about usb desktop microphone , mobile scanner antenna, welcome to visit!
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