MANILA – Total resources of the Philippines banking system rose to P7.72 trillion in the first seven months of this year from a year-ago’s P7.16 trillion.

Data from the Bangko Sentral ng Pilipinas showed that the bulk of the money remains with the universal and commercial banks at P6.92 trillion, up from the P6.40 trillion of same period last year.

Thrift banks came in second at P612.37 billion, higher than the P575.37 billion in end-July 2011.

Rural banks account for the balance of P186.77 billion, which is the level as of December last year. This is higher than the P185.64 billion in end-July 2011.

Earlier, BSP Governor Amando Tetangco Jr. said the country’s banking system remains strong contrary to its counterparts, particularly in Europe.

He traced this situation to the reforms on among others governance, risk management and stronger partnership with market players.

He earlier disclosed that deposits’ average growth between 1999 to 2007 is about eight percent but the level rose to about 13.40 percent from 2007 to last year.

Loans posted even higher expansion at about 10.62 percent on the average from 2007 to 2011 from around 3.67 annually from 1999 to 2007.

Also, banks’ capital adequacy ratio, which is the gauge of the financial health of banks, continues to remain strong at about 17 percent on consolidated basis, higher than the 10 percent regulatory requirement.

Similarly, U/KBs’ non-performing loan ratio to date is 2.06 percent and the sector’s coverage ratio is 135 percent.

Tetangco admits that the country’s banking system is not immune from the deleveraging, economic slowdown and capital outflows from advanced economies.

He, however, stressed that because of the reforms put in place for some years, the domestic banking system is now more resilient to the negative developments overseas.

“We believe that the Philippine banking system is in a position of strength. Such strength has been achieved through the reforms that we have invested in the past and whose benefits have come to fruition.” he added.*PNA

back to top