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THE
amount of bank assets exposed to varying kinds of risks
rose over a three-month period ending in June this year
but the adequacy of their capital still improved by half
a percent, the Bangko Sentral ng Pilipinas said on
Wednesday.
“The
average capital adequacy ratio (CAR) of the banking
system as of end-June remains at its end-March level of
17.54 percent on solo basis and 18.83 percent on
consolidated basis.
“These
were 53 basis points and 50 basis points higher than
CARs recorded as of end-June of 17.01 percent and 18.33
percent on both solo and consolidated basis,
respectively,” BSP Governor Amando M. Tetangco Jr. said.
Regulations require banks to boost capital as the amount
of risks they take on as lenders or even as market
entities rises over time.
A
capital adequacy ratio of 10 percent is the BSP norm or
higher than the internationally sanctioned 8-percent
minimum.
According to Tetangco, the banking system’s
risk-weighted assets for the period increased to P2.623
billion on solo basis and to P2.837 billion on
consolidated basis.
These
represent an increase by 1.47 percent (for solo) and
2.34 percent (consolidated) higher from end-March levels
when risk-weighted assets on solo and aggregate basis
stood at only P2.585 billion and P2.772 billion,
respectively.
“This
was supported by a minimal increase in capital level,
which went up only by P6.9 billion, or 1.51 percent,
from P453.3 billion on solo basis at end-March and by
P12.4 billion, or 2.37 percent, from P522 billion on
consolidated basis as of the previous quarter,” Tetangco
said.
On the
other hand the banks’ qualifying capital at end-June
stood at P460.2 billion on solo basis. |
