Small banks’ capital adequate

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Standalone thrift banks (TBs) and rural and cooperative banks (RCBs) were more than adequately capitalized in the first quarter of 2015, the Bangko Sentral ng Pilipinas reported on Wednesday,

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Standalone banks, or those not affiliated with universal or commercial banks, had a capital adequacy ratios above the 10 percent regulatory minimum.

In particular, thrift banks had a CAR of 21.66 percent while rural and commercial banks recorded a ratio of 18,24 percent.

The TB figure was down from the 22.31 percent registered as of end-December 2014 “due to a quarter-on-quarter rise in risk-weighted assets (RWA) brought about by an increase in exposure to debt securities held-for-trading,” the central bank said.

The overall CAR of stand-alone RCBs, meanwhile, of inched up from the end-December 18.17 percent, attributable to a higher quarter-on-quarter increase in their qualifying capital of 1.17 percent compared to the 0.77 percent rise in their RWA.

Stand-alone TBs and RCBs accounted for 3.7 percent of the Philippine banking system’s assets at the end of the first quarter this year, the central bank noted.

“The Bangko Sentral ng Pilipinas monitors the capital position of banks as part of its supervisory efforts to promote adherence to high credit underwriting standards and to enhance the resilience of financial institutions against systemic,” it added.

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