Basel 3 leverage ratio credit positive for PH – Moody’s

Moody’s Investors Service said the Philippine central bank’s adoption of the stiffer Basel 3 leverage ratio for local banks is credit-positive for local banks.

“The higher minimum leverage ratio (together with stricter Basel III minimum capital requirements established in 2014) is credit-positive for Philippine banks because it would require them to hold more capital, making them more resistant to losses,” the ratings firm stated in its Credit Outlook report published Thursday.