• PH financial system’s resources hit P12.8T

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    The total resources of the country’s financial system—banks and non-banking institutions included—continued to show stability and expanded in the first quarter to P12.83 trillion, up 9.26 percent from the P10.76 trillion recorded a year earlier.

    Banks—consisting of universal and commercial banks, thrift banks and rural banks—posted resources that hit P10.46 trillion in the three-month period, up 24.18 percent from P8.42 trillion in the same period last year.

    Total resources of universal and commercial banks in the first quarter rose to P9.43 trillion, higher by 24.84 percent from P7.55 trillion a year ago, the Bangko Sentral ng Pilipinas (BSP) said.

    Thrift banks accounted for P830 billion of the total resources in the quarter, up 22.18 percent year-on-year from P679.3 billion in 2013, while rural banks’ resources were recorded at P202.3 billion.

    Resources of non-bank institutions rose by 1.53 percent to P2.37 trillion compared to P2.34 trillion a year earlier. Non-bank institutions include investment houses, finance companies, investment companies, securities dealers/brokers, pawnshops, lending investors, non-stock savings and loan associations, credit card companies and private and government insurance companies.

    The BSP has made significant efforts in ensuring the stability of the country’s financial system through its policy setting mandate and other initiatives aimed to guard the system against risks.

    Earlier, the Monetary Board approved the adoption of a Financial Consumer Protection Framework in the Philippines, which would become an integral part of banking supervision to ensure that the Philippine financial system will remain stable.

    In its May 8 meeting, the central bank also decided to further raise the reserve requirement ratio (RRR) for commercial banks by 1 percentage point to 20 percent, effective May 30, to mitigate potential risks to financial stability that could arise from the strong growth in domestic liquidity.

    In January, the BSP also ordered universal and commercial banks in the country to comply with Basel III’s 10-percent capital adequacy ratio standards with Tier 1 common equity and Tier 1 capital ratios of 6 percent and 7.5 percent, respectively.

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