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Monday, March 28, 2016

Overstated Capital of Philippine Banks as of September 30, 2015

On July 25, 2012, the Bangko Sentral ng Pilipinas (BSP) encouraged banks that continue to reflect unbooked losses or "deferred charges" on their balance sheets to charge those losses against retained earnings.  This implies that the BSP now considers that these banks have amassed so much in retained earnings that "they can now afford to absorb higher charges without impairing their capital and also without making their shareholders unhappy."

But can these banks do so? The answer is: yes but only for some banks.  As can be seen from the table below, nine banks have Deferred Charges as of September 30, 2015:

  1. United Coconut Planters Bank (Deferred Charges of 39.98% of SE)
  2. Planters Development Bank (Deferred Charges of 33.57% of SE)
  3. Bataan Development Bank (Deferred Charges of 11.50% of SE)
  4. City Savings Bank (Deferred Charges of 6.21% of SE)
  5. Bank of Commerce (Deferred Charges of 1.52% of SE)
  6. Card SME Bank, Inc. (Deferred Charges of 0.47% of SE)
  7. Wealth Development Bank Corporation (Deferred Charges of 0.19% of SE)
  8. Banco De Oro Unibank, Inc. (Deferred Charges of 0.01% of SE)
  9. Farmers Savings and Loan Bank (Deferred Charges of 0.00% of SE)

It must be noted that five of these banks were ranked as  distressed (highlighted in yellow) as of June 30, 2015:

  1. United Coconut Planters Bank (Distressed Ratio of 329.00%)
  2. Planters Development Bank  (Distressed Ratio of 233.86%)
  3. Bank of Commerce (Distressed Ratio of 147.91%)
  4. Bataan Development Bank (Distressed Ratio of 135.84%)
  5. Wealth Development Bank Corporation (Distressed Ratio of 113.34%)

For more information on distressed banks, please see the previous blog post: "The Top Distressed Philippine Banks as of June 30, 2015.

For two of the banks, the immediate booking their Deferred Charges will only serve to impair 25% or more of their Stockholders Equity as of September 30, 2015:

  1. United Coconut Planters Bank (Deferred Charges of 39.98% of SE)
  2. Planters Development Bank (Deferred Charges of 33.57% of SE)
Naturally, these banks are considered distressed.

Retained Earnings

Only five banks have sufficient Retained Earnings (RE) to absorb their unbooked losses as of March 31, 2015:

  1. City Savings Bank (Deferred Charges 10.07% of RE)
  2. Card SME Bank Inc (Deferred Charges 4.86% of RE)
  3. Wealth Development Bank Corporation (Deferred Charges 1.00% of RE)
  4. BDO Unibank (Deferred Charges of 0.02% of RE)
  5. Farmers Savings and Loan Bank, Inc. (Deferred Charges of 0.01% of RE)
For two banks with overstated capital, Deferred Charges will exceed their Retained Earnings:
  1. United Coconut Planters Bank (Deferred Charges of 131.30% of RE)
  2. Bataan Development Bank (Deferred Charges of 103.10% of RE)

Two of the banks with  Deferred Charges have negative Retained Earnings.  As such, they do not have the capacity to absorb additional losses.

  1. Bank of Commerce (Retained Earnings of - Php 4.389 billion vs. Deferred Charges of Php 229.771 million.
  2. Planters Development Bank (Retained Earnings of - PhP 436.012 million vs. Deferred Charges of Php 1.148 billion

Philippine Banking System
Deferred Charges Not Yet Written Down
Impact on Stockholder's Equity
In Php
September 30, 2015
















Bank Type of Bank Deferred Charges Unbooked Losses Total Deferred Charges Stockholder's Equity Adjusted SE Impact on SE
UNITED COCONUT PLANTERS BANK U/KB 8,284,746,199.58 0.00 8,284,746,199.58 20,719,936,917.67 12,435,190,718.09 39.98%
PLANTERS DEVELOPMENT BANK Thrift 1,148,009,066.86 0.00 1,148,009,066.86 3,420,157,260.19 2,272,148,193.33 33.57%
BATAAN DEVELOPMENT BANK Thrift 9,011,344.94 0.00 9,011,344.94 78,385,234.48 69,373,889.54 11.50%
CITY SAVINGS BANK Thrift 488,441,062.18 0.00 488,441,062.18 7,859,388,416.43 7,370,947,354.25 6.21%
BANK OF COMMERCE U/KB 229,770,509.95 0.00 229,770,509.95 15,133,153,608.97 14,903,383,099.02 1.52%
CARD SME BANK INC A THRIFT BANK Thrift 2,625,302.96 0.00 2,625,302.96 555,733,939.98 553,108,637.02 0.47%
WEALTH DEVELOPMENT BANK CORPORATION Thrift 810,202.50 0.00 810,202.50 422,479,800.69 421,669,598.19 0.19%
BDO UNIBANK INC U/KB 12,322,130.89 0.00 12,322,130.89 191,548,843,479.44 191,536,521,348.55 0.01%
FARMERS SAVINGS & LOAN BANK INC Thrift 2,353.28 0.00 2,353.28 111,211,942.89 111,209,589.61 0.00%
Grand Total
10,175,738,173.14 0.00 10,175,738,173.14 239,849,290,600.74 229,673,552,427.60 4.24%
























Philippine Banking System


Deferred Charges Not Yet Written Down


Impact on Retained Earnings


In Php


September 30, 2015


















Bank Total Deferred Charges RE Adjusted RE Impact on RE


UNITED COCONUT PLANTERS BANK 8,284,746,199.58 6,309,707,990.17 -1,975,038,209.41 131.30%


BATAAN DEVELOPMENT BANK 9,011,344.94 8,740,127.21 -271,217.73 103.10%


CITY SAVINGS BANK 488,441,062.18 4,849,480,670.85 4,361,039,608.67 10.07%


CARD SME BANK INC A THRIFT BANK 2,625,302.96 53,970,098.26 51,344,795.30 4.86%


WEALTH DEVELOPMENT BANK CORPORATION 810,202.50 81,060,644.78 80,250,442.28 1.00%


BDO UNIBANK INC 12,322,130.89 65,933,566,296.69 65,921,244,165.80 0.02%


FARMERS SAVINGS & LOAN BANK INC 2,353.28 42,209,998.68 42,207,645.40 0.01%


BANK OF COMMERCE 229,770,509.95 -4,388,470,031.01 -4,618,240,540.96 -5.24%


PLANTERS DEVELOPMENT BANK 1,148,009,066.86 -436,011,644.82 -1,584,020,711.68 -263.30%


Grand Total 10,175,738,173.14 72,454,254,150.81 62,278,515,977.67 14.04%



Tuesday, March 22, 2016

The Great Bangladesh Central Bank Heist of 2016: Whose Heads Should Roll in RCBC?

RCBC Jupiter Branch Manager Maia Santos-Deguito



Today, RCBC fired  the top officers of the RCBC Jupiter branch in Makati, namely, bank manager Maia Santos-Deguito and senior customer relations officer Angela Torres "for alleged illegal transactions linked to the $81-million Bangladesh bank heist."

RCBC President Lorenzo Tan


RCBC President Lorenzo Tan has offered, not to fall on his sword like Atiur Rahman, the beleaguered Bangladesh Central Bank Governor, but to go on leave "to give the bank a free hand in investigating the alleged money laundering issue involving its Jupiter branch in Makati and its branch manager."  According to Atty. Francis Lim, Mr. Tan's legal counsel, the RCBC is solidly behind Lorenzo Tan: "The bank’s board thanked him for his gentlemanly and decent gesture but said their trust in him is intact and unshaken."

But is the bank's board really behind Mr. Tan? After all, these words were spoken by the legal counsel of Mr. Tan and not by the legal counsel of the bank itself.  The bank, along with a whole host of Philippine and international regulatory officials, is still investigating exactly what happened.  It would take months, maybe even years, before this case is resolved.  After all, this case put the spotlight on the entire country as one of the money laundering capitals of the world, a financial black hole where else dirty money disappears never to be found again.

This case has all the elements of a Hollywood blockbuster: robbing a central bank, fake bank accounts, cars full of cash, disappearing cyber experts, and casinos that would dwarf anything conjured up by Danny Ocean. Someday, someone in Hollywood will make a movie out of this great caper.

We won't bog the reader down in the details of what happened.  But there is one thing that Lorenzo Tan said that struck seemed odd.  He said that the US $81 million transaction did not need his approval because the money can enter the system without the need for their intervention.  "Because to impose such a requirement would slow down the process that needs to be expeditious and efficient...International remittances under accurate SWIFT instructions are credited to the beneficiaries accounts without the need of any manual intervention."

Compliance vs. Economic Efficiency:

Does this mean that it was RCBC's official policy to emphasize economic efficiency over compliance?

Under BSP Circular No. 706, which updates Anti-Money Laundering Rules and Regulations, RCBC is supposed to report any "covered transaction" involving single transactions in cash or other equivalent monetary instruments in excess of P 0.5 million within one banking day. RCBC is also supposed to flag any suspicious transaction, regardless of the amount involved, where there is "no underlying legal or trade obligation, purpose or economic justification" and "the amount involved is not commensurate with the business or financial capacity of the client" and "any circumstance relating to the transaction which is observed to deviate from the profile of the client and/or client's past transactions with the institution."

If you look at the money trail or read these details, the transactions fit the textbook description of a suspicious transaction.  The Bangladesh Central Bank via the New York Fed wiring US$ 81 million to four individuals who just recently opened accounts with nominal amounts of money? There must be a giant red flag here somewhere.

MLPP

The bank seems to be paying lip service to its MLPP or Money Laundering and Terrorist Financing Prevention Program.  The current MLPP was approved by RCBC's board last November 2014 and "was implemented bankwide." The approved MLPP "was disseminated to all offices and subsidiaries within and outside the Philippines." The MLPP details the procedures for complying and implementing the AMLA (Anti-Money Laundering Act) including suspicious transaction reporting.  Under BSP's Circular No. 706, the bank is supposed to have a reporting chain under which the suspicious transaction will be processed.  Moreover, there is supposed to be an approved board-level committee which decides whether or not the bank should file a report to the Anti-Money Laundering Council.

BASE60

RCBC's reporting system, called the BASE60 AML Monitoring System (BASE60) was launched in July 2014.  The Base60 monitors all financial transactions in the Bank to facilitate the detection of money laundering and terrorist financing schemes.  It is capable of aggregating all customer accounts as well as generating various reports for the use of AML Department (AMLD).  To conform to BSP Circular No. 706, this system supposed to generate timely reports for RCBC's board and senior management. The system has a sophisticated integrated alert and case management system that can generate custom alerts using parameters set by the client.

BASE60 is an end to end software solution developed by Object Frontier Software that is used by quite a few Philippine banks other than RCBC:
  1. United Coconut Planters Bank (UCPB)
  2. EastWest Bank, Security Bank
  3. China Bank
  4. PhilTrust Bank
  5. Robinsons Bank
  6. Planters Bank
  7. Asia United Bank (AUB)
  8. One Network Bank (ONB)
  9. Philippine Bank of Communications (PBCOM)

According to Mr.Eduardo Arcenio C. Roldan, the AML Compliance Office/Senior Manager of Asia United Bank, the software was useful for "the investigation of suspicious transaction made possible by the generation of alerts based on approved parameters." Another banker, Mr. Carlos L. Chuakay Jr., AVP & AML Officer of PBCOM Compliance Group, said that the alert scenarios that were built into AML Base60, for both the customer and transaction modules, effectively helped our business units to monitor their accounts accordingly."

Given that the software had the capability to generate alerts based on both customers and their transactions, what alert scenarios did RCBC build into its BASE60 system?

Internal Audit Department

Under BSP Circular No. 706, RCBC's Internal Audit department is required to conducted a periodic and independent evaluation  of the suspicious transaction reporting system as well as the adequacy and effectiveness of its internal controls associated with money laundering.

Compliance Office

The management and implementation of the MLPP is a primary task of the bank's Compliance Office. The bank's Compliance Officer monitors AMLA compliance and conducts regular compliance testing of business units. All banking units to submit to the Compliance Office certificates of compliance with the Anti-Money Laundering Rules and Regulations on a quarterly basis. The bank's Anti-Money Laundering Department regularly reports to the Anti-Money Laundering Committee, senior management committees and the BOD to disclose results of their monitoring of AMLA. The Compliance Office meets with and submits compliance reports directly to Audit Committee because RCBC's board and senior management have the ultimate responsibility to implement the provisions of these Anti-Money Laundering rules and regulations.

In May 2011, the Compliance Office was reorganized and expanded into three departments: Anti-Money Laundering Department, Testing and Monitoring Department, and the Corporate Governance Department under the direct control and supervision of the Compliance Officer.  The Compliance Office has an AML Lawyer, AML Specialists, and Compliance Specialists.  The designated Deputy Compliance Officer (DCO) from each unit/department/division is responsible for the actual implementation of applicable regulatory issuances and the submission of compliance certifications to the Compliance Office.  The compliance function also covers oversight of the activities of the bank's domestic subsidiaries under BSP supervision to ensure uniform implementation of the requirements of the BSP and other regulatory agencies.

Customer Profiling

Under its MLPP, the bank is required to risk profile its clients to "Low, Normal, or High with its corresponding customer due diligence of Reduced, Average or Enhanced. Decisions to enter into a business relationship with a high-risk customer requires senior management approval, and in some cases such as a politically exposed person or a private individual holding a prominent position, Group Head approval is necessary."

Under BSP Circular No. 706, customers normally designated as low risk are often individual customers with regular employment or economically productive activity, small account balance and transactions, and a resident of the area of the covered institution's office or branch. For these customers, reduced due diligence may be applied.  Other low-risk clients are banking institutions, trust entities, and quasi-banks, publicly-listed companies, and government-owned and controlled corporations (GOCCs).

How were the RCBC individual accounts in question profiled? Low risk?  If they were designated as low risk at the time they were accepted as customers, didn't the bank perform additional customer due diligence prior to disbursing to them very large amounts of money directly from the Bangladesh Central Bank? Didn't the bank ask what business they had with the Bangladesh Central Bank?

AMLA Training

Based on RCBC's 2014 Annual Report, the directors, and senior officers received some training on the Anti-Money Laundering Act of 2013. Were these sessions merely corporate "check the box" exercises in compliance?

  • AML Training for Directors last November 28, 2011.  Topics included: Functions of the AMLC; Covered and Suspicious Transaction; Updated AML Rules and Regulation (BSP Circular No. 706); Frequently asked questions involving Politically Exposed Persons (PEPs); Responsibility of the Board of Directors of the Bank on AML Compliance; Other Highlights of BSP Circular No. 706.  The speaker was Atty. Richard David Funk II, Deputy Director and Head of the Compliance and Investigation Group of the AMLC.  The program was facilitated by the Regulatory Affairs Division, Legal and Regulatory Affairs Group, RCBC.
  • Updates of the Anti-Money Laundering Act of 2013, as amended.  Attended by RCBC Directors and Senior Officers last September 30, 2013.  The speaker was Mr. Arnold Frane of the Legal Services Group, Anti-Money Laundering Council Secretariat.  This BSP Program was facilitated by the Regulatory Affairs Division, Legal and Regulatory Affairs Group, RCBC.
The bank's Compliance Office also conducted "Comprehensive Compliance Training" for various units of RCBC.  The lecture provided "each participant with information on regulatory and compliance awareness as well as operational guidance on the use of the new AMLA monitoring system." RCBC's Retail Banking Group received this training in 2013 and again in 2014 in the Branch Re-orientation Program of the Retail Banking Group.


Multiple Possible Points of Failure at RCBC




There are obviously many possible points of failure in RCBC's compliance system:
  • Branch Level
  • Retail Banking Group
  • BASE60 
  • Compliance Office
  • Internal Audit
  • Legal and Regulatory Affairs
  • President & CEO
  • Audit Committee
The obvious point of failure was at the level of RCBC's Jupiter branch, wherein the branch manager and its senior customer relations officer were summarily removed.

Another possible point of failure was at the Retail Banking Group.  Since branches clearly fall under Retail Banking Group, this could be the second point of failure. The Head of Retail Banking Group is new: Lizette Margaret J. Racela was only appointed Group Head of Retail Banking as of February 1, 2016 - a little over a month before the anomalous transactions took place.  She previously came from the consumer lending business of RCBC Savings Bank where she was responsible for the the growth of its loan portfolio.  The previous head was Raul Victor B. Tan, Executive Vice President of RCBC, who now heads the Treasury. While serving as Retail Banking Group Head, Mr. Tan also served as the Head of Treasury from March 2015 until Ms. Racela took over the Retail Banking Group.  Could holding two demanding jobs be one source of the problem and could this have distracted Mr. Raul Tan from his implementing AML compliance in the Retail Banking Group?  This remains to be seen.

RCBC EVP Raul Victor B. Tan


Another possible point of failure was the BASE60 AML Software, itself.  It is unclear if the software flagged the anomalous transactions or whether it has the capacity to do so.  In terms of spot foreign exchange transactions, RCBC is the biggest Philippine bank using the BASE60 software.  According to BASE60, its alert system was customizable on a customer and transaction basis.  It is not clear if the alert system was configured properly or used parameters that could have flagged the transaction.  It could have been a GIGO problem, as they say in computer parlance: Garbage In, Garbage Out. What is clear was that it was the Bangladesh Central Bank that notified the BSP regarding the anomalous transactions, which, in turn, prompted the BSP and the Anti-Monetary Laundering Council to begin an investigation.

Compliance is definitely an issue in RCBC.  It is unclear if the transactions were flagged by the Compliance Office or what level of customer or transaction due diligence was conducted beyond the branch level.  It is also unclear if all banking units had "clean" quarterly certificates of compliance. In RCBC's 2014 Annual Report, RCBC First Vice President Ma. Fe P. Salamatin is listed as the bank's Compliance Officer and Head of its Regulatory Affairs Division. There was also an obvious deficiency in RCBC's Compliance Testing and Monitoring. RCBC First Vice President Ruth Mendez Aninon is the Head of the Compliance Testing and Monitoring Department in the Compliance Office of the bank's Regulatory Affairs Division.

Internal Audit obviously failed to spot the weaknesses of RCBC's AML compliance systems. RCBC First Senior Vice President Ana Luisa S. Lim heads the Internal Audit Group.

RCBC First Senior Vice President Ana Luisa S. Lim

As a facilitator of the AML training, the Legal and Regulatory Affairs Group may have had some role to play in this fiasco. Executive Vice President and Corporate Secretary Maria Celia H. Fernandez-Estavillo is listed as the Head of the Legal and Regulatory Affairs Group.


RCBC EVP Maria Celia H. Fernandez-Estavillo


Tone From the Top

As President & CEO, Lorenzo Tan sets the "tone" of the organization from the top.  He is a very strong influence in shaping the bank's culture of compliance.  Given his statements above, it seems obvious that his policies emphasized efficiency over compliance.

Audit Committee

RCBC has won many awards for Corporate Governance in recent years, but its Audit Committee is another possible point of failure. The Audit Committee is one of the two most essential board committees in RCBC. The other committee, the Corporate Governance Committee, nominates qualified candidates to the board and oversees the company's executive compensation program.

The Audit Committee is tasked with oversight of the bank's compliance with legal and regulatory requirements.  Specifically, it reviews the compliance reports submitted to the Audit Committee by the Compliance Officer during Audit Committee meetings.  The Audit Committee also approves the annual work plan of the Compliance Office.  It reviews the extent and scope, activities, staffing, resources and organizational structure of the Internal Audit function.  It approves the annual audit plan to ensure its conformity with the objectives of the bank.  It conducts quarterly reviews of the performance of the Internal Audit function, including capacity and manpower complement. It periodically reviews the Internal Audit Charters. It also oversees the assessment and management of the bank's enterprise risk such as legal and reputational risks.

The board is composed of three board members, at least two of whom are independent directors, including the Chairman, and another one with audit experience.  The committee composition is as follows:
  • Armando M. Medina, Chairman
  • Medel T. Nera, Member
  • Francisco C. Eizmendi, Jr., Member
Both Chairman Medina and Francisco C. Eizmendi, Jr. are listed as independent directors.

RCBC Audit Committee Member Medel T. Nera
Independent directors are considered independent when they are:

"Independent from management or from any business relationship which could, or could reasonably be perceived to materially interfere with the exercise of independent judgment, and the lack of a relationship to the corporation, its related companies or substantial shareholder as a regular director or officer or relative of the same, as an executive or professional adviser within the last five years, or business relations other than arm's length, immaterial or insignificant transactions."

Mr. Nera is a non-independent member of the committee because he serves as President, CEO, or director of four listed companies within the Yuchengco Group of Companies - a major shareholder of RCBC: Director, President, and Chief Executive Officer of House of Investments, Inc., Director of iPeople, Inc., EEI Corporation, and Seafront Resources Corporation.  He also serves as a director of the National Reinsurance Corporation of the Philippines, a listed company outside the YGC. He has been with a director of the bank since 2011.

RCBC Audit Committee Chairman Armando M. Medina


Chairman Medina has been an independent director of the bank since 2003 but was a former President of RCBC.  How independent is Chairman Medina? He may be independent in name only.  According to his Bloomberg Executive Profile, Chairman Medina seems to have long-standing ties to the Yuchengco Group, having served or is serving as an independent director of Malayan Insurance Co., Inc. and Pacific Plans, Inc. - companies associated with the Yuchengco Group. As Chairman of the Audit Committee, Mr. Medina bears the brunt of responsibility for the Audit Committee's lapses in oversight.


RCBC Audit Committee Member Francisco C. Eizmendi, Jr.

Mr. Eizmendi has been an independent director of the bank since 2006. For the past two years, Mr. Eizmendi only attended 8 out of 13 Audit Committee meetings (61.54%) in 2014 and 8 out of 15 Audit Committee meetings (53.33%) in 2013.  It is important to note that Mr. Eizmendi's attendance record when it comes to general board meetings was stellar.  In 2014, he was able to attend 15 out of 16 or 93.75% of general board meetings and 19 out of 20 or 95.00% of general board meetings in 2013. 

In 2014, Mr. Eizmendi attended 10 out of 10 Corporate Governance Committee meetings (100.00%) and 4 out of 6 Related Party Committee meetings (66.67%).  In 2013, Mr. Eizmendi attended 12 out of 12 Corporate Governance Committee meetings (100.00%).

Why was Mr. Eizmendi's attendance record for Audit Committee meetings so poor when his attendance record for general board meetings and other committee meetings was good? Did he prioritize the regular board meetings over the Audit Committee  meetings? Was his health poor at the time of the Audit Committee meetings? According to RCBC, there was no shortage of ways Mr. Eizmendi could have attended Audit Committee meetings:
"Directors attend regular and special meetings in person or through teleconferencing andd videoconferencing in accordance with the rules and regulations of the SEC in a manner allowing the director to actively take part in the deliberations on matters taken up.  The Bank ensures availability of teleconferencing facilities when justifiable causes prevent the director's attendance. A director may also attend the meetings by submitting written comments on the agenda to the Corporate Secretary and the Chairperson prior to the meeting, as provided in Subsection X141.1 of the Manual of Regulations for Banks." 
Mr. Eizmendi was 79 at the time of the 2014 Annual Report.  Maybe retirement, at least from the audit committee, is due if he cannot attend to the demands of the Audit Committee, particularly at a time of crisis, wherein many, many more Audit Committee meetings will be required? Both Chairman Medina and Mr. Eizmendi will end their five-year service period as independent directors by 2017.

Director remuneration can be substantial.  Each Non-Executive Director (NED) receives a per diem of Php 30,000 per regular board meeting.  This amounts to Php 480,000 in per diems per NED in 2014. Audit and Risk Oversight Committee Chairmen receive Php 15,000 per meeting while their committee members receive Php 10,000 per diem per meeting.  For other board committees, chairmen receive Php 10,000 per meeting while members receive Php 6,000 per meeting. Directors also shared a bonus pool of about Php 19 million in 2014, averaging roughly Php 1.3 million per director. So each member of the Audit Committee earned an average of Php 2.0 million in 2014.

Director Remuneration
Director General Meetings Committee Meetings Total Meetings Average Bonus Total Compensation
Armando M. Medina Php450,000.00 Php453,000.00 Php903,000.00 Php1,300,000.00 Php2,203,000.00
Francisco C. Eizmendi, Jr. Php450,000.00 Php170,000.00 Php620,000.00 Php1,300,000.00 Php1,920,000.00
Medel T. Nera Php480,000.00 Php302,000.00 Php782,000.00 Php1,300,000.00 Php2,082,000.00
Total $1,380,000.00 $925,000.00 $2,305,000.00 $3,900,000.00 $6,205,000.00

Bear in mind that all the Audit Committee members have had extensive financial expertise throughout their professional lives, in their capacities as both board directors and corporate executives.  All Audit Committee members attended the update on the Anti-Money Laundering Act conducted by Atty. Richard David C. Funk II, Deputy Director, Compliance and Investigation Group of the Anti-Money Laundering Council for the Board of Directors last August 26, 2014.  Moreover, members of the Board are given independent access to management and the Corporate Secretary for information such as background or explanation on matters brought before the Board, disclosures, budgets, forecasts and internal financial documents.  So, all of the Audit Committee Members have the capability to oversee RCBC's legal and regulatory compliance. Again, there was a lapse in oversight and all Audit Committee members, especially Chairman Medina, bear some responsibility for that lapse.  


So whose Heads Should Roll in RCBC?

The BSP has promised to hold RCBC and its bankers accountable for this humongous black eye to the Philippine Financial System.  If it is to improve, the system must change.  Bank processes and procedures must change. Bank culture must change.  Very often, the ones responsible for the mess are not the ones who should clean it up.  They may be more concerned about deflecting criticism and blame from themselves than actually reforming the system.  Hence, heads must be placed on the chopping block of accountability.  Here are some possible candidates:
  • Raul Victor B. Tan, EVP, former Head of Retail Banking Group
  • Ma. Fe P. Salamatin, FVP, current Compliance Officer and Head of its Regulatory Affairs Division
  • Ruth Mendez Aninon, FVP, current Head, Compliance Testing & Monitoring Department, Compliance Office, Regulatory Affairs Division
  • Ana Luisa S. Lim, FVP, current Head of Internal Audit Group
  • Maria Celia H. Fernandez-Estavillo, EVP and Corporate Secretary, Head of the Legal and Regulatory Affairs Group
  • Lorenzo Tan, President & CEO
  • Armando M. Medina, Chairman, Audit Committee
  • Medel T. Nera, Member, Audit Committee
  • Francisco C. Eizmendi, Jr., Member, Audit Committee
The heads that should roll should come from fairly high up the corporate ladder and not just some unknown and nameless junior executive.  After all, no less than the Governor of the Bangladesh Central Bank himself, Atiur Jain, was compelled to resign even though the crime took place so many levels below him. Such was the gravity of the situation he and his nation faced.  The same holds true for RCBC. It brought enormous shame on not just RCBC but the entire country.  Someone high up has to pay the price.

If nothing happens, then RCBC is looking to ride it out until the controversy dies down.  After all, RCBC is no stranger to scandal.  

Monday, March 21, 2016

The Capital Adequacy Ratios of Philippine Banks - September 30, 2015

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).

There are several commonly used capital adequacy ratios.  These are:


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.


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.

Common Equity Tier 1 Ratio

Investopedia defines the Common Equity Tier 1 Ratio as a capital adequacy ratio that: 

"...excludes any preferred shares or non-controlling interests when determining the calculation. This differs from the Tier 1 capital ratio which is based on the sum of its equity capital and disclosed reserves, and sometimes non-redeemable, non-cumulative preferred stock."
"...Regulators use the Tier 1 common capital ratio to grade a firm's capital adequacy as one of the following rankings: Well-Capitalized, Adequately Capitalized, Undercapitalized, Significantly Undercapitalized, and Critically Undercapitalized."

Well Capitalized: Common Equity Tier 1 Ratio of 6% or more and does not pay any dividends that would affect its capital base.

Adequately Capitalized: Common Equity Tier 1 Ratio of 4% or more.

Undercapitalized: Common Equity Tier 1 Ratio below 4%.

Significantly Undercapitalized: Common Equity Tier 1 Ratio below 3%.

Critically Undercapitalized: Common Equity Tier 1 Ratio below 2%.

Banks "ranked as Undercapitalized or below are prohibited from paying any dividends or management fees.  In addition, they are required to file a capital restoration plan."

For more information regarding this, please read the BIS Basel III definition of capital.


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

The BSP issued new BASEL III Implementing Guidelines that will take effect on January 1, 2014. Under the new guidelines:

"Banks must now meet specific minimum thresholds for so-called Common Equity Tier 1 (CET1) capital and Tier 1 (T1) capital in addition to the Capital Adequacy Ratio (CAR). These regulatory thresholds effectively move banks worldwide to rely more on core capital instruments like CET1 and T1 issues. This is in lieu of hybrid instruments which did not fare well in the latest global crisis as far as absorbing losses. The ability to absorb losses is central to Basel III.
The BSP maintained the minimum Capital Adequacy Ratio (CAR) at 10.0 percent. In addition to CAR, the new framework sets a CET1 ratio of at least 6.0 percent and the Tier I capital ratio is at a minimum of 7.5 percent. 
The new guidelines also introduce a capital conservation buffer of 2.5 percent which shall be made up of CET1 capital. In addition, banks which issued capital instruments from 2011 will be allowed to count these instruments as Basel III-eligible until end-2015
Moreover, banks that are considered by the BSP as "too big to fail" (domestically systemically important banks) will have minimum common equity Tier 1 (CET1) Ratios that are higher by 1.5% to 3.5% higher than the existing minimum of 6.00% and the capital conservation buffer of 2.5%.

Under these guidelines, several Philippine Banks currently do not meet these guidelines as of September 30, 2015.  The banks that fail to meet BSP's minimum capital requirements are as follows:


TOTAL CAR

  1. Bataan Savings and Loan Bank (Total CAR of 0.00)
  2. Comsavings Bank (Total CAR of 1.93)
  3. Planters Development Bank (Total CAR of 6.87)
  4. The Palawan Bank (Total CAR of 8.72)

Tier One CAR
  1. 1st Valley Bank (Tier One CAR of 0.00)
  2. Bataan Savings and Loan Bank (Tier One CAR of 0.00)
  3. Business & Consumers Bank (Tier One CAR of 0.00)
  4. Enterprise Bank Inc. (Tier One CAR of 0.00)
  5. Equicom Savings Bank, Inc. (Tier One CAR of 0.00)
  6. Inter-Asia Development Bank (Tier One CAR of 0.00)
  7. Maritime Savings Bank Corporation (Tier One CAR of 0.00)
  8. Optimum Development Bank (Tier One CAR of 0.00)
  9. Comsavings Bank (Tier One CAR of 1.46)
  10. CARD SME Bank (Tier One CAR of 3.86)
  11. Planters Development Bank (Tier One CAR of 6.22)
  12. The Palawan Bank (Tier One CAR of 8.34)
  13. Sterling Bank of Asia Inc. (Tier One CAR of 8.56)
  14. Philippine Postal Savings Bank Inc (Tier One CAR of 9.46)
  15. Wealth Development Bank Corporation (Tier One CAR of 9.75)
  16. Land Bank of the Philippines (Tier One CAR of 9.86)

Common Equity Tier One CAR

As stated above, the BSP's reporting guidelines on the Common Equity Tier One CAR (CET1) only took effect as of January 1, 2014.  Banks only started reporting this ratio in their Published Statements of Condition for June 30, 2014.  Fifty-six banks reported their CET1 Ratio as 0.00 for September 30, 2015.

However, those banks that did report a CET1 Ratio other than 0.00, three banks reported CET1 Ratios below BSP's recommended ratio.  They are as follows:
  1. Planters Development Bank (CET1 Ratio of 6.22)
  2. Land Bank of the Philippines (CET1 Ratio of 9.86)

The Total CAR, Tier 1 CAR, and Common Equity Tier 1 CAR of Philippine Banks as of September 30, 2015 is as follows:(Banks that do not meet BSP's minimum capital requirements are highlighted in yellow):


Philippine Banking System
TOTAL CAR
September 30, 2015









Bank Type of Bank Total CAR
BATAAN SAVINGS AND LOAN BANK Thrift 0.00
COMSAVINGS BANK Thrift 1.93
PLANTERS DEVELOPMENT BANK Thrift 6.87
THE PALAWAN BANK (PALAWAN DB) INC Thrift 8.72
PHIL POSTAL SAVINGS BANK INC Thrift 10.08
SECURITY BANK SAVINGS CORPORATION Thrift 10.15
WEALTH DEVELOPMENT BANK CORPORATION Thrift 10.36
EQUICOM SAVINGS BANK INC Thrift 10.71
UNITED COCONUT PLANTERS BANK U/KB 10.78
OPPORTUNITY KAUSWAGAN BANK INC (A MICROFINANCE THRIFT BANK) Thrift 11.01
MIZUHO BANK LTD - MANILA BRANCH U/KB 11.02
ASIA UNITED BANK CORPORATION U/KB 11.43
WORLD PARTNERS BANK (A THRIFT BANK) Thrift 11.46
LUZON DEVELOPMENT BANK Thrift 11.68
BDO UNIBANK INC U/KB 12.11
CHINA BANK SAVINGS INC Thrift 12.40
STERLING BANK OF ASIA INC (A SAVINGS BANK) Thrift 12.57
THE BNK OF TOKYO-MITSUBISHI UFJ LTD U/KB 12.58
ENTERPRISE BANK INC (A THRIFT BANK) Thrift 12.85
BANK OF CHINA LIMITED-MANILA BRANCH U/KB 12.87
LAND BANK OF THE PHILIPPINES U/KB 12.92
STANDARD CHARTERED BANK U/KB 12.94
CITY SAVINGS BANK INC Thrift 13.47
BANK OF THE PHIL ISLANDS U/KB 13.48
ANZ BANKING GROUP LTD U/KB 13.82
RCBC SAVINGS BANK INC Thrift 13.99
PENBANK INC (A PDB) (FORMERLY: PENINSULA RB INC) Thrift 14.59
HONGKONG & SHANGHAI BANKING CORP U/KB 14.80
LEGAZPI SAVINGS BANK INC Thrift 14.95
VILLAGE BANK INC (A THRIFT BANK) Thrift 14.96
SECURITY BANK CORP U/KB 14.98
PHIL NATIONAL BANK U/KB 15.12
MAYBANK PHILIPPINES INC U/KB 15.25
CHINA BANKING CORP U/KB 15.74
BPI FAMILY SAVINGS BANK INC Thrift 15.78
FARMERS SAVINGS & LOAN BANK INC Thrift 15.83
RIZAL COMM'L BANKING CORP U/KB 16.00
MALAYAN BANK SAVINGS AND MORT BANK INC Thrift 16.14
PHIL BANK OF COMMUNICATIONS U/KB 16.23
CITIBANK, N.A. U/KB 16.27
EAST WEST BANKING CORP U/KB 16.77
UCPB SAVINGS BANK Thrift 17.09
UNION BANK OF THE PHILS U/KB 17.11
PRODUCERS SAVINGS BANK CORPORATION Thrift 17.38
DEVELOPMENT BANK OF THE PHIL U/KB 17.61
PHIL SAVINGS BANK Thrift 18.16
PHILIPPINE BUSINESS BANK INC A SAVINGS BANK Thrift 18.46
1ST VALLEY BANK INC A DEVELOPMENT BANK Thrift 18.62
BATAAN DEVELOPMENT BANK Thrift 18.65
PHILIPPINE RESOURCES SAVINGS BANKING CORPORATION (PR SAVINGS) Thrift 18.72
METROPOLITAN BANK & TCO U/KB 19.24
PHILIPPINE VETERANS BANK U/KB 19.25
BANK OF MAKATI (A SAVINGS BANK) INC Thrift 19.39
HSBC SAVINGS BANK(PHILS) INC Thrift 20.07
MEGA INT'L COMM'L BANK CO LTD U/KB 20.50
HIYAS BANKING CORPORATION Thrift 20.61
BANK OF COMMERCE U/KB 21.02
CITYSTATE SAVINGS BANK INC Thrift 22.66
METRO CEBU PUBLIC SAVINGS BANK Thrift 22.74
JP MORGAN CHASE BANK NATIONAL ASSN. U/KB 22.98
BDO PRIVATE BANK, INC. U/KB 23.74
DEUTSCHE BANK AG U/KB 24.49
CTBC BANK (PHILIPPINES) CORP U/KB 24.74
FIRST CONSOLIDATED BANK INC (A PDB) Thrift 25.05
BPI DIRECT SAVINGS BANK INC Thrift 25.12
LIFE SAVINGS BANK INC Thrift 25.83
DUMAGUETE CITY DEV BANK INC Thrift 26.11
CARD SME BANK INC A THRIFT BANK Thrift 26.53
KOREA EXCHANGE BANK U/KB 27.03
INTER-ASIA DEVELOPMENT BANK Thrift 28.09
BUSINESS AND CONSUMERS BANK (A DB) Thrift 29.14
TOWER DEVELOPMENT BANK Thrift 29.24
BANK OF AMERICA N.A. U/KB 31.56
LEMERY SAVINGS & LOAN BANK, INC. Thrift 32.78
UNIVERSITY SAVINGS BANK INC Thrift 33.02
PAMPANGA DEVELOPMENT BANK Thrift 33.15
SUN SAVINGS BANK INC Thrift 33.27
MARITIME SAVINGS BANK CORPORATION Thrift 33.88
BANGKOK BANK PUBLIC CO LTD U/KB 34.42
CORDILLERA SAVINGS BANK INC Thrift 34.87
TONGYANG SAVINGS BANK INC Thrift 35.50
ROBINSONS BANK CORPORATION U/KB 39.11
DUNGGANON BANK (A MICROFINANCE THRIFT BANK) INC Thrift 40.51
QUEEN CITY DEVELOPMENT BANK INC OR QUEENBANK A THRIFT BANK Thrift 40.54
PHIL TRUST COMPANY U/KB 41.02
MALASIQUI PROGRESSIVE SLB, INC Thrift 44.05
NORTHPOINT DEV'T BANK INC Thrift 45.45
PHIL STAR DEVELOPMENT BANK INC Thrift 51.25
ING BANK N.V. U/KB 52.62
OPTIMUM DEVELOPMENT BANK INC Thrift 55.71
QUEZON COCONUT BANK INC (A THRIFT BANK) Thrift 57.76
MERCHANTS SAVINGS & LOAN ASSN INC Thrift 58.10
PNB SAVINGS BANK Thrift 60.68
SAMPAGUITA SAVINGS BANK INC Thrift 62.91
BANK ONE SAVINGS AND TRUST CORP. Thrift 67.28
CENTURY SAVINGS BANK CORPORATION Thrift 80.73
PROGRESS SAVINGS AND LOAN BANK INC Thrift 89.95
AL-AMANAH ISLAMIC INVESTMENT BANK OF THE PHILS U/KB 102.81
UNITED OVERSEAS BANK PHILIPPINES Thrift 104.68
ISLA BANK(A THRIFT BANK) INC Thrift 190.82
SUMITOMO MITSUI BANKING CORPORATION-MANILA BRANCH U/KB 3,949.59
BDO ELITE SAVINGS BANK INC Thrift NA
BPI GLOBE BANKO INC A SAVINGS BANK Thrift NA
MBANK PHILIPPINES (A THRIFT BANK) INC Thrift NA
MICROFINANCE MAXIMUM SB INC Thrift NA
PACIFIC ACE SAVINGS BANK INC Thrift NA



Philippine Banking System
Tier One CAR
September 30, 2015









Bank Type of Bank Tier One CAR
1ST VALLEY BANK INC A DEVELOPMENT BANK Thrift 0.00
BATAAN SAVINGS AND LOAN BANK Thrift 0.00
BUSINESS AND CONSUMERS BANK (A DB) Thrift 0.00
ENTERPRISE BANK INC (A THRIFT BANK) Thrift 0.00
EQUICOM SAVINGS BANK INC Thrift 0.00
INTER-ASIA DEVELOPMENT BANK Thrift 0.00
MARITIME SAVINGS BANK CORPORATION Thrift 0.00
OPTIMUM DEVELOPMENT BANK INC Thrift 0.00
COMSAVINGS BANK Thrift 1.46
CARD SME BANK INC A THRIFT BANK Thrift 3.86
PLANTERS DEVELOPMENT BANK Thrift 6.22
THE PALAWAN BANK (PALAWAN DB) INC Thrift 8.34
STERLING BANK OF ASIA INC (A SAVINGS BANK) Thrift 8.56
PHIL POSTAL SAVINGS BANK INC Thrift 9.46
WEALTH DEVELOPMENT BANK CORPORATION Thrift 9.75
LAND BANK OF THE PHILIPPINES U/KB 9.86
MIZUHO BANK LTD - MANILA BRANCH U/KB 10.07
SECURITY BANK SAVINGS CORPORATION Thrift 10.15
BDO UNIBANK INC U/KB 10.39
DEVELOPMENT BANK OF THE PHIL U/KB 10.39
CHINA BANK SAVINGS INC Thrift 10.55
UNITED COCONUT PLANTERS BANK U/KB 10.78
ASIA UNITED BANK CORPORATION U/KB 10.85
LUZON DEVELOPMENT BANK Thrift 10.86
WORLD PARTNERS BANK (A THRIFT BANK) Thrift 11.08
SECURITY BANK CORP U/KB 11.68
THE BNK OF TOKYO-MITSUBISHI UFJ LTD U/KB 11.79
PHIL NATIONAL BANK U/KB 11.81
RIZAL COMM'L BANKING CORP U/KB 12.00
STANDARD CHARTERED BANK U/KB 12.35
BANK OF CHINA LIMITED-MANILA BRANCH U/KB 12.39
PHIL BANK OF COMMUNICATIONS U/KB 12.47
PHIL SAVINGS BANK Thrift 12.47
BANK OF THE PHIL ISLANDS U/KB 12.60
CITY SAVINGS BANK INC Thrift 12.63
PHILIPPINE RESOURCES SAVINGS BANKING CORPORATION (PR SAVINGS) Thrift 12.80
ANZ BANKING GROUP LTD U/KB 13.21
EAST WEST BANKING CORP U/KB 13.21
UNION BANK OF THE PHILS U/KB 13.22
RCBC SAVINGS BANK INC Thrift 13.28
PENBANK INC (A PDB) (FORMERLY: PENINSULA RB INC) Thrift 13.95
LEGAZPI SAVINGS BANK INC Thrift 14.19
MAYBANK PHILIPPINES INC U/KB 14.21
HONGKONG & SHANGHAI BANKING CORP U/KB 14.24
VILLAGE BANK INC (A THRIFT BANK) Thrift 14.63
CHINA BANKING CORP U/KB 14.82
BPI FAMILY SAVINGS BANK INC Thrift 14.90
FARMERS SAVINGS & LOAN BANK INC Thrift 15.08
METROPOLITAN BANK & TCO U/KB 15.39
MALAYAN BANK SAVINGS AND MORT BANK INC Thrift 15.54
CITIBANK, N.A. U/KB 15.57
UCPB SAVINGS BANK Thrift 16.43
UNIVERSITY SAVINGS BANK INC Thrift 16.51
PRODUCERS SAVINGS BANK CORPORATION Thrift 17.17
PHILIPPINE BUSINESS BANK INC A SAVINGS BANK Thrift 17.72
BANK OF MAKATI (A SAVINGS BANK) INC Thrift 18.85
PHILIPPINE VETERANS BANK U/KB 18.86
HSBC SAVINGS BANK(PHILS) INC Thrift 19.38
MEGA INT'L COMM'L BANK CO LTD U/KB 19.54
HIYAS BANKING CORPORATION Thrift 20.30
BANK OF COMMERCE U/KB 20.39
BATAAN DEVELOPMENT BANK Thrift 20.59
CITYSTATE SAVINGS BANK INC Thrift 22.19
METRO CEBU PUBLIC SAVINGS BANK Thrift 22.30
JP MORGAN CHASE BANK NATIONAL ASSN. U/KB 22.84
BDO PRIVATE BANK, INC. U/KB 23.04
CTBC BANK (PHILIPPINES) CORP U/KB 23.96
DEUTSCHE BANK AG U/KB 24.17
BPI DIRECT SAVINGS BANK INC Thrift 24.31
FIRST CONSOLIDATED BANK INC (A PDB) Thrift 24.31
LIFE SAVINGS BANK INC Thrift 25.62
DUMAGUETE CITY DEV BANK INC Thrift 25.71
KOREA EXCHANGE BANK U/KB 26.65
BANK OF AMERICA N.A. U/KB 31.14
SUN SAVINGS BANK INC Thrift 32.36
LEMERY SAVINGS & LOAN BANK, INC. Thrift 32.53
BANGKOK BANK PUBLIC CO LTD U/KB 33.44
CORDILLERA SAVINGS BANK INC Thrift 34.33
TONGYANG SAVINGS BANK INC Thrift 35.50
ROBINSONS BANK CORPORATION U/KB 38.33
DUNGGANON BANK (A MICROFINANCE THRIFT BANK) INC Thrift 40.08
QUEEN CITY DEVELOPMENT BANK INC OR QUEENBANK A THRIFT BANK Thrift 40.13
PHIL TRUST COMPANY U/KB 40.66
MALASIQUI PROGRESSIVE SLB, INC Thrift 43.86
NORTHPOINT DEV'T BANK INC Thrift 45.45
OPPORTUNITY KAUSWAGAN BANK INC (A MICROFINANCE THRIFT BANK) Thrift 49.94
PHIL STAR DEVELOPMENT BANK INC Thrift 50.93
ING BANK N.V. U/KB 52.20
MERCHANTS SAVINGS & LOAN ASSN INC Thrift 57.52
QUEZON COCONUT BANK INC (A THRIFT BANK) Thrift 59.63
PNB SAVINGS BANK Thrift 59.75
SAMPAGUITA SAVINGS BANK INC Thrift 62.88
BANK ONE SAVINGS AND TRUST CORP. Thrift 66.81
CENTURY SAVINGS BANK CORPORATION Thrift 79.53
PROGRESS SAVINGS AND LOAN BANK INC Thrift 89.95
AL-AMANAH ISLAMIC INVESTMENT BANK OF THE PHILS U/KB 102.31
UNITED OVERSEAS BANK PHILIPPINES Thrift 104.08
TOWER DEVELOPMENT BANK Thrift 116.66
PAMPANGA DEVELOPMENT BANK Thrift 125.13
ISLA BANK(A THRIFT BANK) INC Thrift 190.51
SUMITOMO MITSUI BANKING CORPORATION-MANILA BRANCH U/KB 3,948.98
BDO ELITE SAVINGS BANK INC Thrift NA
BPI GLOBE BANKO INC A SAVINGS BANK Thrift NA
MBANK PHILIPPINES (A THRIFT BANK) INC Thrift NA
MICROFINANCE MAXIMUM SB INC Thrift NA
PACIFIC ACE SAVINGS BANK INC Thrift NA


Philippine Banking System
Common Tier 1 Ratio
September 30, 2015









Bank Type of Bank Common Tier 1 Ratio
1ST VALLEY BANK INC A DEVELOPMENT BANK Thrift 0.00
BANK OF AMERICA N.A. U/KB 0.00
BANK OF CHINA LIMITED-MANILA BRANCH U/KB 0.00
BANK OF MAKATI (A SAVINGS BANK) INC Thrift 0.00
BANK ONE SAVINGS AND TRUST CORP. Thrift 0.00
BATAAN DEVELOPMENT BANK Thrift 0.00
BATAAN SAVINGS AND LOAN BANK Thrift 0.00
BUSINESS AND CONSUMERS BANK (A DB) Thrift 0.00
CARD SME BANK INC A THRIFT BANK Thrift 0.00
CENTURY SAVINGS BANK CORPORATION Thrift 0.00
CITYSTATE SAVINGS BANK INC Thrift 0.00
COMSAVINGS BANK Thrift 0.00
CORDILLERA SAVINGS BANK INC Thrift 0.00
DUMAGUETE CITY DEV BANK INC Thrift 0.00
DUNGGANON BANK (A MICROFINANCE THRIFT BANK) INC Thrift 0.00
ENTERPRISE BANK INC (A THRIFT BANK) Thrift 0.00
EQUICOM SAVINGS BANK INC Thrift 0.00
FARMERS SAVINGS & LOAN BANK INC Thrift 0.00
FIRST CONSOLIDATED BANK INC (A PDB) Thrift 0.00
HIYAS BANKING CORPORATION Thrift 0.00
INTER-ASIA DEVELOPMENT BANK Thrift 0.00
ISLA BANK(A THRIFT BANK) INC Thrift 0.00
LEGAZPI SAVINGS BANK INC Thrift 0.00
LEMERY SAVINGS & LOAN BANK, INC. Thrift 0.00
LIFE SAVINGS BANK INC Thrift 0.00
LUZON DEVELOPMENT BANK Thrift 0.00
MALASIQUI PROGRESSIVE SLB, INC Thrift 0.00
MALAYAN BANK SAVINGS AND MORT BANK INC Thrift 0.00
MARITIME SAVINGS BANK CORPORATION Thrift 0.00
METRO CEBU PUBLIC SAVINGS BANK Thrift 0.00
NORTHPOINT DEV'T BANK INC Thrift 0.00
OPPORTUNITY KAUSWAGAN BANK INC (A MICROFINANCE THRIFT BANK) Thrift 0.00
OPTIMUM DEVELOPMENT BANK INC Thrift 0.00
PAMPANGA DEVELOPMENT BANK Thrift 0.00
PENBANK INC (A PDB) (FORMERLY: PENINSULA RB INC) Thrift 0.00
PHIL POSTAL SAVINGS BANK INC Thrift 0.00
PHIL STAR DEVELOPMENT BANK INC Thrift 0.00
PHILIPPINE BUSINESS BANK INC A SAVINGS BANK Thrift 0.00
PHILIPPINE RESOURCES SAVINGS BANKING CORPORATION (PR SAVINGS) Thrift 0.00
PRODUCERS SAVINGS BANK CORPORATION Thrift 0.00
PROGRESS SAVINGS AND LOAN BANK INC Thrift 0.00
QUEEN CITY DEVELOPMENT BANK INC OR QUEENBANK A THRIFT BANK Thrift 0.00
QUEZON COCONUT BANK INC (A THRIFT BANK) Thrift 0.00
SAMPAGUITA SAVINGS BANK INC Thrift 0.00
STERLING BANK OF ASIA INC (A SAVINGS BANK) Thrift 0.00
SUN SAVINGS BANK INC Thrift 0.00
THE PALAWAN BANK (PALAWAN DB) INC Thrift 0.00
TONGYANG SAVINGS BANK INC Thrift 0.00
TOWER DEVELOPMENT BANK Thrift 0.00
UCPB SAVINGS BANK Thrift 0.00
UNITED COCONUT PLANTERS BANK U/KB 0.00
UNITED OVERSEAS BANK PHILIPPINES Thrift 0.00
UNIVERSITY SAVINGS BANK INC Thrift 0.00
VILLAGE BANK INC (A THRIFT BANK) Thrift 0.00
WEALTH DEVELOPMENT BANK CORPORATION Thrift 0.00
WORLD PARTNERS BANK (A THRIFT BANK) Thrift 0.00
PLANTERS DEVELOPMENT BANK Thrift 6.22
LAND BANK OF THE PHILIPPINES U/KB 9.86
BDO UNIBANK INC U/KB 10.00
MIZUHO BANK LTD - MANILA BRANCH U/KB 10.07
SECURITY BANK SAVINGS CORPORATION Thrift 10.15
DEVELOPMENT BANK OF THE PHIL U/KB 10.39
CHINA BANK SAVINGS INC Thrift 10.53
ASIA UNITED BANK CORPORATION U/KB 10.85
SECURITY BANK CORP U/KB 11.68
THE BNK OF TOKYO-MITSUBISHI UFJ LTD U/KB 11.79
PHIL NATIONAL BANK U/KB 11.81
RIZAL COMM'L BANKING CORP U/KB 12.00
STANDARD CHARTERED BANK U/KB 12.35
PHIL BANK OF COMMUNICATIONS U/KB 12.47
PHIL SAVINGS BANK Thrift 12.47
BANK OF THE PHIL ISLANDS U/KB 12.60
CITY SAVINGS BANK INC Thrift 12.63
ANZ BANKING GROUP LTD U/KB 13.21
EAST WEST BANKING CORP U/KB 13.21
UNION BANK OF THE PHILS U/KB 13.22
RCBC SAVINGS BANK INC Thrift 13.28
MAYBANK PHILIPPINES INC U/KB 14.21
HONGKONG & SHANGHAI BANKING CORP U/KB 14.24
CHINA BANKING CORP U/KB 14.82
BPI FAMILY SAVINGS BANK INC Thrift 14.90
METROPOLITAN BANK & TCO U/KB 15.39
CITIBANK, N.A. U/KB 15.57
PHILIPPINE VETERANS BANK U/KB 17.13
ROBINSONS BANK CORPORATION U/KB 18.19
BDO PRIVATE BANK, INC. U/KB 18.26
HSBC SAVINGS BANK(PHILS) INC Thrift 19.38
MEGA INT'L COMM'L BANK CO LTD U/KB 19.54
BANK OF COMMERCE U/KB 20.39
JP MORGAN CHASE BANK NATIONAL ASSN. U/KB 22.84
CTBC BANK (PHILIPPINES) CORP U/KB 23.96
DEUTSCHE BANK AG U/KB 24.17
BPI DIRECT SAVINGS BANK INC Thrift 24.31
KOREA EXCHANGE BANK U/KB 26.65
BANGKOK BANK PUBLIC CO LTD U/KB 33.44
PHIL TRUST COMPANY U/KB 40.66
ING BANK N.V. U/KB 52.20
MERCHANTS SAVINGS & LOAN ASSN INC Thrift 57.52
PNB SAVINGS BANK Thrift 59.74
AL-AMANAH ISLAMIC INVESTMENT BANK OF THE PHILS U/KB 102.31
SUMITOMO MITSUI BANKING CORPORATION-MANILA BRANCH U/KB 3,948.98
BDO ELITE SAVINGS BANK INC Thrift NA
BPI GLOBE BANKO INC A SAVINGS BANK Thrift NA
MBANK PHILIPPINES (A THRIFT BANK) INC Thrift NA
MICROFINANCE MAXIMUM SB INC Thrift NA
PACIFIC ACE SAVINGS BANK INC Thrift NA