The NPL Ratios of the Philippine Commercial Banking System - As of March 31, 2012

DOSRI.  Short for DOSRI Loans and Transactions.  Otherwise known as loans to Directors, Officers, Stockholders, and Related Interests (DOSRI).  Regulators and Legislators have established laws and regulations that limit DOSRI loans.  The General Banking Act and BSP regulations limit the amount of the loans granted by a bank to a single borrower to 25% of equity.  The amount of individual loans to DOSRI, of which 70% must be secured, should not exceed the amount of the deposit and book value of the investment in the bank.  In the aggregate, loans to DOSRI generally should not exceed the total equity or 15% of the total loan portfolio of the bank, whichever is lower.

In the Philippine Commercial Banking Industry, DOSRI Loans stood at PHP 178.809 billion, or 5.83% of a Total Loan Portfolio - Net (TLP-Net) of PHP 3.067 trillion as of March 31, 2012.

Editor's Note: Data is culled from  the Published Statements of Condition of individual commercial banks found in www.bsp.gov.ph.  Banks highlighted in yellow are classified as Distressed Banks.  The level of distressed is measured by the Ratio of their Total Distressed Assets/Total Capital Cushion as of March 31, 2012.  See a previous blog post: "Philippine Commercial Banks Show Further Improvement in the 1st Qtr. of 2012". 

Philippine Commercial Banking System
DOSRI as % of TLP-Net
March 31, 2012
	DOSRI	TLP-Net	DOSRI/TLP-Net
Bank	(In PHP)	(In PHP)	(In %)
Development Bank of the Philippines	35,066,251,880.40	113,383,166,069.68	30.93%
Land Bank of the Philippines	65,941,740,423.94	245,476,254,509.56	26.86%
Robinsons Bank Corporation	948,815,796.74	16,829,344,126.37	5.64%
China Banking Corporation	7,839,468,006.74	143,566,392,654.41	5.46%
Banco De Oro Unibank Inc.	30,241,272,794.28	630,024,685,068.84	4.80%
East West Banking Corporation	2,066,619,470.92	48,229,620,025.37	4.28%
Metropolitan Bank & Trust Company	14,115,251,243.72	342,355,964,631.46	4.12%
Philippine National Bank	4,738,665,599.82	119,929,076,159.06	3.95%
Allied Banking Corporation	3,220,978,128.04	82,530,707,593.75	3.90%
Rizal Commercial Banking Corporation	5,031,312,362.24	143,133,213,862.55	3.52%
Bank of Commerce	1,116,602,264.08	47,689,501,912.16	2.34%
Maybank Philippines Inc.	547,655,000.86	26,774,402,407.62	2.05%
Bank of the Philippine Islands	5,175,673,420.34	322,665,049,923.77	1.60%
Asia United Bank	262,762,978.40	26,930,289,742.30	0.98%
HongKong & Shanghai Banking Corporation	555,550,708.78	75,105,650,581.65	0.74%
Bank of America N.A.	29,171,452.32	3,944,442,437.77	0.74%
Union Bank of the Philippines	726,403,985.61	118,749,166,238.92	0.61%
Citibank N.A.	613,832,935.03	125,520,385,256.88	0.49%
United Coconut Planters Bank	222,316,852.43	61,428,225,134.53	0.36%
JP Morgan Chase Bank National Association	57,356,180.34	22,078,442,448.28	0.26%
Philippine Bank of Communications	21,672,864.50	9,577,646,488.19	0.23%
Philippine Veterans Bank	53,081,386.27	25,313,665,800.06	0.21%
Chinatrust (Philippines) Commercial Banking Corporation	18,400,571.63	12,509,747,028.48	0.15%
Security Bank Corporation	126,795,681.91	90,879,580,509.13	0.14%
ANZ Banking Group Ltd	33,386,475.48	26,915,027,475.10	0.12%
Standard Chartered Bank	25,673,482.17	39,680,547,708.46	0.06%
The Bank of Tokyo - Mitsubishi UFJ Ltd	11,717,016.24	21,821,207,563.30	0.05%
Korea Exchange Bank	171,680.00	5,025,148,762.42	0.00%
Bangkok Bank Public Co. Ltd.	0.00	3,035,764,310.20	0.00%
Bank of China Limited - Manila Branch	0.00	3,974,303,432.60	0.00%
BDO Private Bank, Inc.	0.00	6,846,581,084.00	0.00%
Deutsche Bank AG	0.00	22,470,704,605.42	0.00%
Internationale Nederlanden Groep Bank	0.00	17,062,116,314.65	0.00%
Mega International Commercial Bank Co. Ltd	0.00	6,758,670,439.66	0.00%
Mizuho Corporate Bank Ltd - Manila Branch	0.00	27,498,793,336.82	0.00%
Philippine Trust Company	0.00	31,445,091,414.40	0.00%
Al Amanah Islamic Bank of the Philippines	NA	NA	NA
Grand Total	178,808,600,643.23	3,067,158,577,057.82	5.83%

Source: www.bsp.gov.ph

Of the 37 banks in this list, eight banks had no DOSRI loans as of March 31, 2012.  Of the 28 banks that reported DOSRI loans, the ratio of DOSRI Loans to Total Loan Portfolio - Net was slightly higher (6.07%) than the 5.83% ratio reported for all commercial banks as of March 31, 2012.  The banks with the highest ratio of DOSRI Loans to TLP-Net were government banks:

1. Development Bank of the Philippines (30.93% of TLP-Net)
2. Land Bank of the Philippines (26.86% of TLP-Net)

DOSRI rules indicate that DOSRI Loans, in the aggregate, should not exceed the total equity of the bank.  Therefore banks with significantly high DOSRI Loans as a percentage of Total Stockholders Equity (SE) may be approaching DOSRI Limits.  In this matter, two government banks again stand out:

1. Development Bank of the Philippines (94.08% of SE)
2. Land Bank of the Philippines (91.94% of SE)

A third bank, Banco de Oro Unibank has DOSRI Loans equivalent to 30.61% of SE as of March 31, 2012, down significantly from 44.54% as of December 31, 2011.  On an overall basis, DOSRI Loans comprised 24.01% of Stockholders Equity as of March 31, 2012, down slightly from 27.77% as of December 31, 2011.

Philippine Commercial Banking System
DOSRI as % of Stockholders Equity
March 31, 2012
	DOSRI	SE	DOSRI/SE
Bank	(In PHP)	(In PHP)	(In %)
Land Bank of the Philippines	65,941,740,423.94	70,094,481,720.76	94.08%
Development Bank of the Philippines	35,066,251,880.40	38,140,888,446.93	91.94%
Banco De Oro Unibank Inc.	30,241,272,794.28	98,807,290,670.51	30.61%
China Banking Corporation	7,839,468,006.74	36,835,361,632.68	21.28%
Robinsons Bank Corporation	948,815,796.74	5,315,208,370.33	17.85%
Allied Banking Corporation	3,220,978,128.04	18,065,606,042.95	17.83%
East West Banking Corporation	2,066,619,470.92	13,313,574,609.14	15.52%
Metropolitan Bank & Trust Company	14,115,251,243.72	105,180,575,473.51	13.42%
Philippine National Bank	4,738,665,599.82	36,654,293,490.05	12.93%
Rizal Commercial Banking Corporation	5,031,312,362.24	41,519,821,454.71	12.12%
HongKong & Shanghai Banking Corporation	555,550,708.78	4,852,503,309.39	11.45%
Maybank Philippines Inc.	547,655,000.86	5,351,071,269.49	10.23%
Citibank N.A.	613,832,935.03	7,798,122,283.60	7.87%
Bank of the Philippine Islands	5,175,673,420.34	88,219,897,458.02	5.87%
Bank of Commerce	1,116,602,264.08	19,531,355,463.52	5.72%
Bank of America N.A.	29,171,452.32	596,946,705.20	4.89%
JP Morgan Chase Bank National Association	57,356,180.34	1,776,225,884.07	3.23%
Asia United Bank	262,762,978.40	9,940,242,367.46	2.64%
Standard Chartered Bank	25,673,482.17	1,306,230,414.81	1.97%
Union Bank of the Philippines	726,403,985.61	40,655,375,592.49	1.79%
The Bank of Tokyo - Mitsubishi UFJ Ltd	11,717,016.24	722,158,670.65	1.62%
ANZ Banking Group Ltd	33,386,475.48	2,262,570,661.61	1.48%
United Coconut Planters Bank	222,316,852.43	17,895,564,429.08	1.24%
Philippine Veterans Bank	53,081,386.27	5,261,907,247.41	1.01%
Security Bank Corporation	126,795,681.91	31,432,971,028.36	0.40%
Chinatrust (Philippines) Commercial Banking Corporation	18,400,571.63	6,075,781,712.98	0.30%
Philippine Bank of Communications	21,672,864.50	7,931,155,088.99	0.27%
Korea Exchange Bank	171,680.00	518,588,577.59	0.03%
Bangkok Bank Public Co. Ltd.	0.00	1,139,977,349.27	0.00%
Bank of China Limited - Manila Branch	0.00	627,073,822.36	0.00%
BDO Private Bank, Inc.	0.00	5,129,217,466.83	0.00%
Deutsche Bank AG	0.00	1,479,134,481.18	0.00%
Internationale Nederlanden Groep Bank	0.00	2,666,677,041.42	0.00%
Mega International Commercial Bank Co. Ltd	0.00	646,824,154.50	0.00%
Mizuho Corporate Bank Ltd - Manila Branch	0.00	1,470,853,832.00	0.00%
Philippine Trust Company	0.00	15,430,714,876.97	0.00%
Al Amanah Islamic Bank of the Philippines	NA	NA	NA
Grand Total	178,808,600,643.23	744,646,243,100.82	24.01%

Source: www.bsp.gov.ph

Banks often take pains to avoid DOSRI Loans from falling past due. Although bank policies often state that DOSRI Loans are made “on commercial, arm's length terms, i.e., substantially on the same terms as loans to other individuals and businesses of comparable risks” (See RCBC's Consolidated Financial Statements as of December 31, 2010), loan underwriting standards should be tighter because a past due DOSRI loan reflects badly on the bank.    DOSRI Loans that fall past due are often:

1. Written off as soon as possible;
2. Refinanced or Restructured to become current; or are
3. Technically reclassified as a general NPL (like if a loan to a former bank officer falls past due). 

As a result, only PHP 0.575 billion of DOSRI Loans or 0.32% are past due out of a Total DOSRI Loan Portfolio of PHP 178.809 billion as of March 31, 2012, down significantly from 0.77% as of December 31, 2011.

Philippine Commercial Banking System
DOSRI Past Due as % of DOSRI
March 31, 2012
	DOSRI Past Due	DOSRI	DOSRI Past Due/DOSRI
Bank	(In PHP)	(In PHP)	(In %)
Rizal Commercial Banking Corporation	526,011,201.38	5,031,312,362.24	10.45%
Philippine Bank of Communications	1,423,242.21	21,672,864.50	6.57%
Asia United Bank	4,924,599.04	262,762,978.40	1.87%
East West Banking Corporation	36,460,501.61	2,066,619,470.92	1.76%
United Coconut Planters Bank	3,792,637.15	222,316,852.43	1.71%
Philippine Veterans Bank	750,211.79	53,081,386.27	1.41%
Chinatrust (Philippines) Commercial Banking Corporation	35,694.90	18,400,571.63	0.19%
Bank of the Philippine Islands	1,987,636.32	5,175,673,420.34	0.04%
China Banking Corporation	7,026.07	7,839,468,006.74	0.00%
Union Bank of the Philippines	0.00	726,403,985.61	0.00%
Standard Chartered Bank	0.00	25,673,482.17	0.00%
Security Bank Corporation	0.00	126,795,681.91	0.00%
Robinsons Bank Corporation	0.00	948,815,796.74	0.00%
Philippine National Bank	0.00	4,738,665,599.82	0.00%
Metropolitan Bank & Trust Company	0.00	14,115,251,243.72	0.00%
Maybank Philippines Inc.	0.00	547,655,000.86	0.00%
Land Bank of the Philippines	0.00	65,941,740,423.94	0.00%
HongKong & Shanghai Banking Corporation	0.00	555,550,708.78	0.00%
Development Bank of the Philippines	0.00	35,066,251,880.40	0.00%
Bank of Commerce	0.00	1,116,602,264.08	0.00%
Banco De Oro Unibank Inc.	0.00	30,241,272,794.28	0.00%
ANZ Banking Group Ltd	0.00	33,386,475.48	0.00%
Allied Banking Corporation	0.00	3,220,978,128.04	0.00%
Al Amanah Islamic Bank of the Philippines	NA	NA	NA
Bangkok Bank Public Co. Ltd.	0.00	0.00	NA
Bank of America N.A.	0.00	29,171,452.32	NA
Bank of China Limited - Manila Branch	0.00	0.00	NA
BDO Private Bank, Inc.	0.00	0.00	NA
Citibank N.A.	0.00	613,832,935.03	NA
Deutsche Bank AG	0.00	0.00	NA
Internationale Nederlanden Groep Bank	0.00	0.00	NA
JP Morgan Chase Bank National Association	0.00	57,356,180.34	NA
Korea Exchange Bank	0.00	171,680.00	NA
Mega International Commercial Bank Co. Ltd	0.00	0.00	NA
Mizuho Corporate Bank Ltd - Manila Branch	0.00	0.00	NA
Philippine Trust Company	0.00	0.00	NA
The Bank of Tokyo - Mitsubishi UFJ Ltd	0.00	11,717,016.24	NA
Grand Total	575,392,750.47	178,808,600,643.23	0.32%

Source: www.bsp.gov.ph

Given all the measures banks can take to prevent a DOSRI Loan from falling past due, it is not surprising to find past due rates of DOSRI Loans significantly below the NPL ratios of their Total Loan Portfolios.  What is generally surprising is to find DOSRI Loans that fall past due in significantly higher proportions than the banks NPL ratio on their Total Loan Portfolios.  Only three banks fall into this category:

1. Rizal Commercial Banking Corporation (DOSRI Past Due Ratio of 10.45% versus an NPL Ratio of 0.86%)
2. Philippine Bank of Communications (DOSRI Past Due Ratio of 6.57% versus an NPL Ratio of 1.02%)

The NPL Ratio of the Philippine Commercial Banking System has ticked up slightly to 2.53% of Total Loan Portfolio - Net as of March 31, 2012 from 2.40% as of December 31, 2011.

Philippine Commercial Banking System
NPL as % of TLP-Net
March 31, 2012
	NPL	TLP-Net	NPL/TLP
Bank	(In PHP)	(In PHP)	(In %)
Bank of Commerce	6,220,748,917.22	47,689,501,912.16	13.04%
United Coconut Planters Bank	4,616,649,136.80	61,428,225,134.53	7.52%
Philippine Veterans Bank	1,778,672,048.33	25,313,665,800.06	7.03%
Philippine National Bank	6,693,723,286.21	119,929,076,159.06	5.58%
Development Bank of the Philippines	5,439,228,424.71	113,383,166,069.68	4.80%
East West Banking Corporation	2,176,706,583.32	48,229,620,025.37	4.51%
Allied Banking Corporation	3,555,390,024.89	82,530,707,593.75	4.31%
Robinsons Bank Corporation	570,305,290.15	16,829,344,126.37	3.39%
Land Bank of the Philippines	8,054,725,930.55	245,476,254,509.56	3.28%
Maybank Philippines Inc.	841,786,418.14	26,774,402,407.62	3.14%
Philippine Trust Company	956,633,100.98	31,445,091,414.40	3.04%
China Banking Corporation	4,269,236,686.52	143,566,392,654.41	2.97%
Standard Chartered Bank	1,143,617,774.62	39,680,547,708.46	2.88%
Chinatrust (Philippines) Commercial Banking Corporation	357,060,889.15	12,509,747,028.48	2.85%
Union Bank of the Philippines	2,964,664,674.04	118,749,166,238.92	2.50%
Banco De Oro Unibank Inc.	13,360,637,051.26	630,024,685,068.84	2.12%
Bank of the Philippine Islands	5,296,281,760.20	322,665,049,923.77	1.64%
Asia United Bank	434,043,308.35	26,930,289,742.30	1.61%
Metropolitan Bank & Trust Company	4,845,154,297.61	342,355,964,631.46	1.42%
HongKong & Shanghai Banking Corporation	851,487,295.89	75,105,650,581.65	1.13%
Philippine Bank of Communications	97,945,495.60	9,577,646,488.19	1.02%
Bangkok Bank Public Co. Ltd.	28,514,155.55	3,035,764,310.20	0.94%
Rizal Commercial Banking Corporation	1,235,495,282.80	143,133,213,862.55	0.86%
Citibank N.A.	1,073,738,265.84	125,520,385,256.88	0.86%
Security Bank Corporation	725,943,238.00	90,879,580,509.13	0.80%
Korea Exchange Bank	34,374,632.02	5,025,148,762.42	0.68%
Bank of China Limited - Manila Branch	8,660,895.91	3,974,303,432.60	0.22%
ANZ Banking Group Ltd	23,339,114.85	26,915,027,475.10	0.09%
The Bank of Tokyo - Mitsubishi UFJ Ltd	125,938.80	21,821,207,563.30	0.00%
Internationale Nederlanden Groep Bank	87.84	17,062,116,314.65	0.00%
Bank of America N.A.	0.00	3,944,442,437.77	0.00%
BDO Private Bank, Inc.	0.00	6,846,581,084.00	0.00%
Deutsche Bank AG	0.00	22,470,704,605.42	0.00%
JP Morgan Chase Bank National Association	0.00	22,078,442,448.28	0.00%
Mega International Commercial Bank Co. Ltd	0.00	6,758,670,439.66	0.00%
Mizuho Corporate Bank Ltd - Manila Branch	0.00	27,498,793,336.82	0.00%
Al Amanah Islamic Bank of the Philippines	NA	NA	NA
Grand Total	77,654,890,006.15	3,067,158,577,057.82	2.53%

Source: www.bsp.gov.ph

However, quite a few banks have significantly high NPLs as a percentage of their stockholders equity as of March 31, 2012.  These are as follows:

1. Standard Chartered Bank (NPL/SE Ratio of 87.55%)
2. Philippine Veterans Bank (NPL/SE Ratio of 33.80%)
3. Bank of Commerce (NPL/SE Ratio of 31.85%)
4. United Coconut Planters Bank (NPL/SE Ratio of 25.80%)

Again, any further deterioration in the value of these banks NPLs may lead to a significant reduction of the bank's capital, particularly if the bank has not adequately reserved capital for future losses on these NPLs.  But of the four banks listed above, three banks are listed as distressed:

1. Philippine Veterans Bank
2. Bank of Commerce
3. United Coconut Planters Bank

See a previous blog post: "Philippine Commercial Banks Show Further Improvement in the 1st Qtr. of 2012".

Philippine Commercial Banking System
NPL as % of SE
March 31, 2012
	NPL	SE	NPL/SE
Bank	(In PHP)	(In PHP)	(In %)
Standard Chartered Bank	1,143,617,774.62	1,306,230,414.81	87.55%
Philippine Veterans Bank	1,778,672,048.33	5,261,907,247.41	33.80%
Bank of Commerce	6,220,748,917.22	19,531,355,463.52	31.85%
United Coconut Planters Bank	4,616,649,136.80	17,895,564,429.08	25.80%
Allied Banking Corporation	3,555,390,024.89	18,065,606,042.95	19.68%
Philippine National Bank	6,693,723,286.21	36,654,293,490.05	18.26%
HongKong & Shanghai Banking Corporation	851,487,295.89	4,852,503,309.39	17.55%
East West Banking Corporation	2,176,706,583.32	13,313,574,609.14	16.35%
Maybank Philippines Inc.	841,786,418.14	5,351,071,269.49	15.73%
Development Bank of the Philippines	5,439,228,424.71	38,140,888,446.93	14.26%
Citibank N.A.	1,073,738,265.84	7,798,122,283.60	13.77%
Banco De Oro Unibank Inc.	13,360,637,051.26	98,807,290,670.51	13.52%
China Banking Corporation	4,269,236,686.52	36,835,361,632.68	11.59%
Land Bank of the Philippines	8,054,725,930.55	70,094,481,720.76	11.49%
Robinsons Bank Corporation	570,305,290.15	5,315,208,370.33	10.73%
Union Bank of the Philippines	2,964,664,674.04	40,655,375,592.49	7.29%
Korea Exchange Bank	34,374,632.02	518,588,577.59	6.63%
Philippine Trust Company	956,633,100.98	15,430,714,876.97	6.20%
Bank of the Philippine Islands	5,296,281,760.20	88,219,897,458.02	6.00%
Chinatrust (Philippines) Commercial Banking Corporation	357,060,889.15	6,075,781,712.98	5.88%
Metropolitan Bank & Trust Company	4,845,154,297.61	105,180,575,473.51	4.61%
Asia United Bank	434,043,308.35	9,940,242,367.46	4.37%
Rizal Commercial Banking Corporation	1,235,495,282.80	41,519,821,454.71	2.98%
Bangkok Bank Public Co. Ltd.	28,514,155.55	1,139,977,349.27	2.50%
Security Bank Corporation	725,943,238.00	31,432,971,028.36	2.31%
Bank of China Limited - Manila Branch	8,660,895.91	627,073,822.36	1.38%
Philippine Bank of Communications	97,945,495.60	7,931,155,088.99	1.23%
ANZ Banking Group Ltd	23,339,114.85	2,262,570,661.61	1.03%
The Bank of Tokyo - Mitsubishi UFJ Ltd	125,938.80	722,158,670.65	0.02%
Internationale Nederlanden Groep Bank	87.84	2,666,677,041.42	0.00%
Bank of America N.A.	0.00	596,946,705.20	0.00%
BDO Private Bank, Inc.	0.00	5,129,217,466.83	0.00%
Deutsche Bank AG	0.00	1,479,134,481.18	0.00%
JP Morgan Chase Bank National Association	0.00	1,776,225,884.07	0.00%
Mega International Commercial Bank Co. Ltd	0.00	646,824,154.50	0.00%
Mizuho Corporate Bank Ltd - Manila Branch	0.00	1,470,853,832.00	0.00%
Al Amanah Islamic Bank of the Philippines	NA	NA	NA
Grand Total	77,654,890,006.15	744,646,243,100.82	10.43%

Source: www.bsp.gov.ph

Two Philippine Thrift Banks Fail to Meet BSP's Minimum Standards for Capital Adequacy - March 2012

A bank's Capital Adequacy Ratio is a measure of a bank's capital and financial strength.  It is expressed as a percentage of a bank's risk weighted credit exposures.  It is also known as the "Capital to Risk Weighted Assets Ratio (CRAR).

The general formula is as follows:

CAR = (Tier 1 Capital + Tier 2 Capital)/Risk Weighted Assets

Tier 1 Capital

Tier 1 CAR is the ratio of a bank's core or equity capital to its total risk-weighted assets.  It measures financial strength from a regulator's point of view. Tier 1 Capital measures the bank's ability to absorb losses without a bank being required to cease trading.

The formula for Tier 1 Capital is as follows:

Tier 1 Capital = (Paid-up Capital + Statutory Reserves + Disclosed Free Reserves) - (Equity Investments in Subsidiary + Intangible Assets + Current & B/F losses)

Tier 1 CAR = Tier 1 Capital/Risk Weighted Assets

Tier 2 Capital

Tier 2 Capital is supplementary capital.  It measures the ability of a bank to absorb losses in the event of a winding up and so it provides a lesser degree of protection to depositors.

The formula for Tier 2 Capital is as follows:

 Tier 2 Capital = Undisclosed Reserves + General Loss Reserves + Hybrid Debt Capital Instruments and Subordinated Debts.

Risk Weighted Assets

Risk Weighted Assets are a bank's on balance sheet assets and off-balance sheet exposures, weighted according to risk.  Different classes of assets have different risk weightings.  For instance, cash on hand or a government bond has zero risk weighting and are subtracted from the total risk assets.  A loan would have a 100% risk weighthing - it would be counted towards the total risk assets of the bank.

More information about this can be found here.

Minimum Capital Requirements

International Guidelines

Basel III is the global requlatory standard on bank capital adequacy, stress testing, and market liquidity risk agreed upon by the members of the Basel Committee on Banking Supervision.

Under Basel III, the minimum Common Equity Tier 1 Capital Ratio is 4.5%, Tier 1 Capital Ratio is 6.0%, conservation buffer is 2.5%, and the minimum Total CAR is 8.0%. 

For more information on Basel III, read this.

BSP Guidelines

BSP Guidelines are somewhat stricter than Basel III.  Under the new BSP Guidelines conforming to Basel III, the minimum Common Equity Tier 1 Capital Ratio is  6.0%, Tier 1 Capital Ratio is 7.5%, conservation buffer is still 2.5%, and the minimum Total CAR is 10.0%.  See "BSP Issues Basel 3 Memorandum on Banks' Capital Base Standards" for more information.

Under these guidelines, most Philippine Thrift Banks currently meet these guidelines as of March 31, 2012.

Total CAR

Under BSP guidelines, two thrift banks (highlighted in yellow in the table below) do not meet the minimum Total CAR guideline of 10.0% as of March 31, 2012.  These banks are as follows:

1. Real Bank (A Thrift Bank) Inc. (Total CAR of 6.33%)
2. Legazpi Savings Bank Inc. (Total CAR of 8.47%)

These two banks have been previously flagged in a previous post "Philippine Thrift Banks Continue to Improve in the First Quarter of 2012".

Philippine Thrift Banking System
Total CAR
March 31, 2012
Bank	Total CAR
Real Bank (A Thrift Bank) Inc.	6.33
Legazpi Savings Bank Inc.	8.47
Equicom SB	10.08
Citibank Savings Inc.	10.10
Sterling Bank of Asia Inc.	11.77
Penbank, Inc.	12.29
University Savings Bank	12.38
Planters Development Bank	14.41
BPI Family Savings Bank	14.93
Philippine Resource Savings Banking Corporation	15.73
RCBC Savings Bank	15.74
Farmers Savings & Loan Bank	15.81
World Partners Bank (A Thrift Bank)	16.21
Luzon Development Bank	17.51
Philippine Savings Bank	18.02
Village SLA, Inc.	18.49
Hiyas Savings & Loan Bank	18.82
HSBC Savings Bank (Phils) Inc.	18.83
Opportunity Microfinance Bank	19.06
Philippine Postal Savings Bank	19.36
Producers Savings Bank	20.34
Premiere Development Bank	20.37
BPI Direct Savings Bank	20.86
BPI Globe Banko Inc. Savings Bank	21.91
Wealth Bank - A Development Bank	21.94
First Consolidated Bank	22.24
GSIS Family Bank	24.13
Allied Savings Bank	24.59
Philippine Business Bank	25.01
Dumaguete City Development Bank	25.14
Liberty Savings Bank	26.10
Bataan Development Bank	26.59
Malayan Bank Savings & Mortgage Bank	27.50
Business & Consumers Bank	27.62
Cordillera Savings Bank	29.14
Card SME Bank Inc. (A Thrift Bank)	30.34
UCPB Savings Bank	30.86
Life Savings Bank	33.93
China Bank Savings	36.48
Lemery Savings & Loan Bank, Inc.	37.52
Tong Yang Savings Bank Inc.	39.33
Malasiqui Progressive SLB, Inc.	39.68
Maritime SLA	40.13
The Queen City Development Bank	45.35
Pampanga Development Bank	47.11
Pridestar Development Bank	55.86
Sampaguita SLA	55.97
Pacific Ace Savings Bank	58.20
Tower Development Bank	58.50
Optimum Development Bank	60.11
Microfinance Maximum SB (Maxbank)	60.63
CityState Savings Bank	64.67
Quezon Coconut Producers SLB Inc.	75.90
Bank One Savings and Trust Corp.	76.10
United Overseas Bank Philippines	78.75
Dungganon Bank	86.22
Northpoint Development Bank	101.76
Progress SLA	108.49
Century Savings Bank	121.25
Merchants Savings & Loan Association Inc.	268.00
Iloilo City Development Bank	294.36
Isla Bank (A Thrift Bank) Inc.	334.03
Sun Savings Bank	769.60
BDO Elite Savings Bank	1,542.48
Bataan SLA	NA
City Savings Bank	NA
Metro Cebu Public Savings Bank	NA

Source: www.bsp.gov.ph

Tier 1 CAR

Under BSP guidelines, two thrift banks (highlighted in yellow in the table below) do not meet the minimum Tier 1 CAR guideline of  7.5% as of December 31, 2011.  These banks are as follows:

1. Real Bank (A Thrift Bank) Inc. (Tier 1 CAR of 3.17%)
2. Legazpi Savings Bank Inc. (Tier 1 CAR of 6.57%)

These two banks have been previously flagged in a previous post: "Philippine Thrift Banks Continue to Improve in the First Quarter of 2012".

Philippine Thrift Banking System
Tier 1 CAR
March 31, 2012
Bank	Tier 1 CAR
Real Bank (A Thrift Bank) Inc.	3.17
Legazpi Savings Bank Inc.	6.57
Planters Development Bank	8.09
Citibank Savings Inc.	9.28
Sterling Bank of Asia Inc.	9.71
Premiere Development Bank	10.84
Philippine Resource Savings Banking Corporation	13.81
Philippine Savings Bank	14.03
BPI Family Savings Bank	14.06
Farmers Savings & Loan Bank	14.78
RCBC Savings Bank	15.13
World Partners Bank (A Thrift Bank)	15.24
Luzon Development Bank	17.13
Producers Savings Bank	18.20
HSBC Savings Bank (Phils) Inc.	18.24
Philippine Postal Savings Bank	18.38
Village SLA, Inc.	18.49
Hiyas Savings & Loan Bank	18.52
BPI Direct Savings Bank	20.00
BPI Globe Banko Inc. Savings Bank	20.95
Wealth Bank - A Development Bank	20.99
First Consolidated Bank	22.24
Allied Savings Bank	24.01
Philippine Business Bank	24.06
Dumaguete City Development Bank	24.79
Bataan Development Bank	25.31
China Bank Savings	25.40
GSIS Family Bank	26.69
Malayan Bank Savings & Mortgage Bank	26.97
Cordillera Savings Bank	28.68
UCPB Savings Bank	30.17
Metro Cebu Public Savings Bank	32.49
Lemery Savings & Loan Bank, Inc.	37.15
University Savings Bank	37.76
Tong Yang Savings Bank Inc.	39.33
Malasiqui Progressive SLB, Inc.	39.50
The Queen City Development Bank	44.93
Quezon Coconut Producers SLB Inc.	57.27
Sampaguita SLA	57.47
Pacific Ace Savings Bank	58.13
Microfinance Maximum SB (Maxbank)	61.95
Life Savings Bank	62.90
Iloilo City Development Bank	63.67
CityState Savings Bank	64.05
Pridestar Development Bank	65.12
Bank One Savings and Trust Corp.	75.45
United Overseas Bank Philippines	78.33
Opportunity Microfinance Bank	81.97
Dungganon Bank	85.56
Northpoint Development Bank	101.76
Pampanga Development Bank	102.86
Progress SLA	108.49
Tower Development Bank	108.67
Century Savings Bank	119.85
Card SME Bank Inc. (A Thrift Bank)	138.74
Merchants Savings & Loan Association Inc.	267.92
Isla Bank (A Thrift Bank) Inc.	333.70
Sun Savings Bank	769.56
BDO Elite Savings Bank	1,542.48
Bataan SLA	NA
Business & Consumers Bank	NA
City Savings Bank	NA
Equicom SB	NA
Liberty Savings Bank	NA
Maritime SLA	NA
Optimum Development Bank	NA
Penbank, Inc.	NA

Source: www.bsp.gov.ph