Bangko Sentral ng Pilipinas (File photo / Philippine Daily Inquirer)
Amid banks’ sustained lending activities, the economy has sufficient buffers to withstand external risks, the Bangko Sentral ng Pilipinas (BSP) said Friday.
“The Philippine financial system’s continued buildup of buffers amid sustained loan growth in the first half of 2017 further strengthens the overall stability of the system. Banks have maintained satisfactory asset quality, adequate provisioning, capital buffers and ample liquidity to serve as early defenses against external shocks,” the BSP said in a statement.
The BSP noted that the banking system’s non-performing loan (NPL) ratio declined to 1.9 percent at end-June from 2.2. percent last year.
“Banks continued to set aside additional allowance for credit losses amounting to P11.6 billion, resulting in improved NPL coverage ratio of 114.2 percent,” the BSP said.
BUSINESS
BUSINESS
BUSINESS
“During the first semester of 2017, the level of capital stock was augmented by P78 billion from capital raising activities and profitable operations from core lending activities with net income of P81.3 billion. This resulted in higher capital adequacy ratio (CAR) of 16 percent on consolidated basis from 15.1 percent as of end-2016,” the BSP added.
According to the BSP, level 1 high-quality liquid assets ensure that the banking system has enough buffers for its liquidity needs, such that the liquidity coverage ratio of banks was higher than the minimum 100-percent requirement.
