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PHL banks exceed global capital standards, says BSP


Banks operating in the Philippines were able to keep their capital at levels significantly higher than the global standards, the Bangko Sentral ng Pilipinas (BSP) reported Thursday. "The Philippine banking system's capitalization remained robust despite geopolitical tensions in the Middle East and North Africa region and concerns over sovereign risk in Europe," the BSP said in a statement, citing Gov. Amando Tetangco Jr. The capital adequacy ratio (CAR) of the banking system remained healthy at 16.48 percent on a solo basis and 17.39 percent on a consolidated basis as of end-March this year. The central bank compared the latest CAR from the revised 15.99 percent and 16.93 percent, respectively, as of end-December. These numbers reflect the system-wide financial solvency of banks, the BSP said and noted that its CAR for Philippine banks is 10 percent and the international benchmark ratio under the Basel Accord is 8 percent. The ratio measures the level of a bank’s capital to its risk. — VS, GMA News