Editor's Note: For the purposes of this article, Philippine Banks or the Philippine Banking System refers to the Philippine Commercial and Universal Banking System and the Philippine Thrift Banking System. We are ignoring the Philippine Rural and Cooperative Banking System whose asset base is tiny in comparison to the whole banking system (Php 205.91 billion or 1.64% of the Php 12,545.76 billion in assets held in the Philippine Banking System as of June 30, 2016).
In an April 9, 2012 article entitled "Stress Test Proves Strength of PH Banks", "Philippine banks are seen to survive a disaster in which the various lenders are forced to write off loans as large as PhP 36 billion without asking shareholders, the central bank, or the national government for bailout money." This assertion stems from a recent stress test conducted by the Bangko Sentral ng Pilipinas (BSP) on all 55 regular and commercial and expanded license banks.
For Philippine Banks, these NPLs currently comprise PhP 135.31 billion or 9.21% of the PhP 1,469.01 billion in Stockholders Equity (SE) as of September 30, 2016. So, writing off 50% of the Philippine Banks NPLs would reduce their aggregate stockholder's equity by a little less than 5%.
Naturally, some banks would be more affected than others. For more information regarding this, please read The Top Distressed Philippine Banks as of September 30, 2016).
The stockholder's equity of ten banks would be severely affected. These banks are:
- BPI Globe Banko Inc (2,154.37% decline in SE)
- Philippine Postal Savings Bank Inc (77.50% decline in SE)
- Opportunity Kauswagan Bank Inc (67.69% decline in SE)
- Luzon Development Bank (63.98% decline in SE)
- World Partners Bank (59.27% decline in SE)
- Equicom Savings Bank (51.02% decline in SE)
- Legazpi Savings Bank Inc (50.80% decline in SE)
- Philippine Resources Savings Banking Corporation (39.77% decline in SE)
- Maritime Savings Bank Corporation (34.35% decline in SE)
- Enterprise Bank Inc (33.87% decline in SE)
| Philippine Banking System | |||
| NPL as % of SE | |||
| September 30, 2016 | |||
| NPL | SE | NPL/SE | |
| Bank | (In PHP) | (In PHP) | (In %) |
| BPI GLOBE BANKO INC A SAVINGS BANK | 344,373,998.27 | 7,992,434.34 | 4308.75% |
| PHIL POSTAL SAVINGS BANK INC | 1,640,187,915.83 | 1,058,216,633.31 | 155.00% |
| OPPORTUNITY KAUSWAGAN BANK INC (A MICROFINANCE THRIFT BANK) | 100,478,233.20 | 74,224,506.93 | 135.37% |
| LUZON DEVELOPMENT BANK | 517,066,469.62 | 404,058,012.13 | 127.97% |
| WORLD PARTNERS BANK (A THRIFT BANK) | 137,429,309.44 | 115,938,824.05 | 118.54% |
| EQUICOM SAVINGS BANK INC | 636,811,214.24 | 626,758,730.90 | 101.60% |
| LEGAZPI SAVINGS BANK INC | 450,487,116.92 | 497,452,769.19 | 90.56% |
| PHILIPPINE RESOURCES SAVINGS BANKING CORPORATION (PR SAVINGS | 1,472,388,536.66 | 1,850,946,782.29 | 79.55% |
| MARITIME SAVINGS BANK CORPORATION | 27,430,460.04 | 39,925,577.13 | 68.70% |
| ENTERPRISE BANK INC (A THRIFT BANK) | 198,058,282.51 | 292,355,245.38 | 67.75% |
| CHINA BANK SAVINGS INC | 4,502,299,081.60 | 7,821,210,951.53 | 57.57% |
| BATAAN DEVELOPMENT BANK | 40,443,319.15 | 75,400,409.55 | 53.64% |
| WEALTH DEVELOPMENT BANK CORPORATION | 252,365,406.44 | 508,836,382.27 | 49.60% |
| THE PALAWAN BANK (PALAWAN DB) INC | 20,180,212.89 | 45,345,870.51 | 44.50% |
| METRO CEBU PUBLIC SAVINGS BANK | 25,320,036.75 | 58,630,483.01 | 43.19% |
| PHILIPPINE VETERANS BANK | 1,920,148,532.73 | 4,478,437,038.24 | 42.88% |
| PAMPANGA DEVELOPMENT BANK | 54,092,503.50 | 131,058,660.90 | 41.27% |
| UCPB SAVINGS BANK | 985,724,574.61 | 2,621,729,090.68 | 37.60% |
| STERLING BANK OF ASIA INC (A SAVINGS BANK) | 972,054,930.79 | 2,587,484,013.68 | 37.57% |
| MICROFINANCE MAXIMUM SB INC | 5,801,774.13 | 15,535,135.56 | 37.35% |
| PENBANK INC (A PDB) (FORMERLY: PENINSULA RB INC) | 151,518,194.30 | 417,720,105.11 | 36.27% |
| RCBC SAVINGS BANK INC | 3,563,204,986.32 | 10,158,403,672.58 | 35.08% |
| MALAYAN BANK SAVINGS AND MORT BANK INC | 335,052,548.11 | 1,004,429,782.08 | 33.36% |
| BPI FAMILY SAVINGS BANK INC | 8,123,032,981.64 | 24,630,504,141.58 | 32.98% |
| 1ST VALLEY BANK INC A DEVELOPMENT BANK | 447,820,468.00 | 1,364,367,929.78 | 32.82% |
| STANDARD CHARTERED BANK | 2,277,960,050.89 | 7,017,719,822.55 | 32.46% |
| FARMERS SAVINGS & LOAN BANK INC | 37,783,485.46 | 117,906,642.16 | 32.05% |
| VILLAGE BANK INC (A THRIFT BANK) | 25,552,620.63 | 81,097,139.42 | 31.51% |
| UNITED COCONUT PLANTERS BANK | 6,312,050,076.31 | 21,411,774,394.94 | 29.48% |
| NORTHPOINT DEV'T BANK INC | 100,382,035.16 | 347,512,047.45 | 28.89% |
| PRODUCERS SAVINGS BANK CORPORATION | 426,272,143.49 | 1,523,530,979.32 | 27.98% |
| BANK OF MAKATI (A SAVINGS BANK) INC | 1,715,453,783.07 | 6,355,580,191.55 | 26.99% |
| EAST WEST BANKING CORP | 8,502,163,356.59 | 31,685,632,764.13 | 26.83% |
| CITYSTATE SAVINGS BANK INC | 140,511,602.44 | 582,910,405.56 | 24.11% |
| PHIL STAR DEVELOPMENT BANK INC | 20,032,181.12 | 84,143,922.59 | 23.81% |
| PHIL SAVINGS BANK | 4,475,439,320.31 | 19,348,131,817.30 | 23.13% |
| PHIL BANK OF COMMUNICATIONS | 2,283,081,027.49 | 10,035,381,618.31 | 22.75% |
| DUNGGANON BANK (A MICROFINANCE THRIFT BANK) INC | 23,839,161.85 | 105,260,339.26 | 22.65% |
| UNIVERSITY SAVINGS BANK INC | 89,865,132.18 | 409,195,561.92 | 21.96% |
| LIFE SAVINGS BANK INC | 13,535,320.94 | 64,374,895.34 | 21.03% |
| MAYBANK PHILIPPINES INC | 2,404,370,029.81 | 11,459,762,757.56 | 20.98% |
| BUSINESS AND CONSUMERS BANK (A DB) | 15,921,373.30 | 80,166,313.16 | 19.86% |
| MALASIQUI PROGRESSIVE SLB, INC | 8,390,479.25 | 52,893,282.63 | 15.86% |
| PHILIPPINE BUSINESS BANK INC A SAVINGS BANK | 1,467,430,873.86 | 9,783,294,718.66 | 15.00% |
| DEVELOPMENT BANK OF THE PHIL | 6,851,069,030.92 | 46,153,823,955.40 | 14.84% |
| CITY SAVINGS BANK INC | 1,404,431,487.61 | 9,627,879,435.92 | 14.59% |
| INTER-ASIA DEVELOPMENT BANK | 8,568,049.77 | 60,800,589.82 | 14.09% |
| UNION BANK OF THE PHILS | 7,951,594,741.54 | 60,864,429,577.76 | 13.06% |
| OPTIMUM DEVELOPMENT BANK INC | 109,784,239.74 | 843,689,148.13 | 13.01% |
| DUMAGUETE CITY DEV BANK INC | 32,589,350.10 | 266,977,938.85 | 12.21% |
| FIRST CONSOLIDATED BANK INC (A PDB) | 448,961,979.40 | 3,718,689,279.76 | 12.07% |
| BANK OF COMMERCE | 1,855,644,519.55 | 15,874,738,964.29 | 11.69% |
| BPI DIRECT SAVINGS BANK INC | 191,837,077.75 | 1,771,503,589.44 | 10.83% |
| SUN SAVINGS BANK INC | 15,302,238.90 | 147,120,131.74 | 10.40% |
| YUANTA SAVINGS BANK PHILIPPINES INC | 103,695,194.06 | 997,565,754.30 | 10.39% |
| CORDILLERA SAVINGS BANK INC | 13,254,102.64 | 132,182,802.36 | 10.03% |
| HIYAS BANKING CORPORATION | 13,845,821.64 | 151,955,107.40 | 9.11% |
| ANZ BANKING GROUP LTD | 405,519,723.90 | 4,541,699,215.58 | 8.93% |
| LAND BANK OF THE PHILIPPINES | 8,084,444,246.85 | 91,117,891,955.27 | 8.87% |
| PHIL NATIONAL BANK | 8,518,905,151.86 | 101,895,482,350.76 | 8.36% |
| ASIA UNITED BANK CORPORATION | 1,875,670,487.58 | 22,694,519,662.37 | 8.26% |
| CHINA BANKING CORP | 4,609,661,975.35 | 57,928,346,393.89 | 7.96% |
| BANGKO KABAYAN INC | 34,185,431.96 | 455,487,809.33 | 7.51% |
| BANK OF CHINA LIMITED-MANILA BRANCH | 189,040,895.91 | 2,540,023,753.67 | 7.44% |
| BDO UNIBANK INC | 15,455,700,305.05 | 214,669,254,074.54 | 7.20% |
| CARD SME BANK INC A THRIFT BANK | 45,647,812.97 | 658,722,626.30 | 6.93% |
| CTBC BANK (PHILIPPINES) CORP | 485,595,806.28 | 7,038,190,699.89 | 6.90% |
| PNB SAVINGS BANK | 768,619,166.47 | 11,413,970,024.36 | 6.73% |
| CITIBANK, N.A. | 788,325,974.03 | 13,062,838,862.23 | 6.03% |
| TOWER DEVELOPMENT BANK | 7,396,175.06 | 123,987,587.27 | 5.97% |
| ROBINSONS BANK CORPORATION | 713,818,768.00 | 12,573,381,884.01 | 5.68% |
| HONGKONG & SHANGHAI BANKING CORP | 806,160,007.79 | 14,469,407,938.09 | 5.57% |
| BANK OF THE PHIL ISLANDS | 7,996,789,257.69 | 160,250,998,256.40 | 4.99% |
| PACIFIC ACE SAVINGS BANK INC | 3,201,492.69 | 67,968,259.21 | 4.71% |
| LEMERY SAVINGS & LOAN BANK, INC. | 3,502,078.88 | 78,768,063.24 | 4.45% |
| PHIL TRUST COMPANY | 1,179,597,115.48 | 27,533,789,981.24 | 4.28% |
| BANK ONE SAVINGS AND TRUST CORP. | 23,103,734.39 | 570,575,638.03 | 4.05% |
| CENTURY SAVINGS BANK CORPORATION | 35,947,320.47 | 977,205,775.87 | 3.68% |
| QUEEN CITY DEVELOPMENT BANK INC OR QUEENBANK A THRIFT BANK | 21,604,255.85 | 655,995,854.61 | 3.29% |
| BATAAN SAVINGS AND LOAN BANK | 1,889,208.47 | 58,264,413.67 | 3.24% |
| HSBC SAVINGS BANK(PHILS) INC | 61,066,188.09 | 1,895,120,326.94 | 3.22% |
| RIZAL COMM'L BANKING CORP | 1,939,990,833.94 | 60,497,738,050.16 | 3.21% |
| SECURITY BANK CORP | 2,232,110,933.80 | 95,445,926,178.92 | 2.34% |
| BANGKOK BANK PUBLIC CO LTD | 45,436,941.43 | 3,152,975,067.89 | 1.44% |
| KOREA EXCHANGE BANK | 23,050,195.00 | 1,618,173,459.43 | 1.42% |
| METROPOLITAN BANK & TCO | 2,689,483,124.87 | 192,439,269,508.81 | 1.40% |
| QUEZON COCONUT BANK INC (A THRIFT BANK) | 604,828.80 | 58,577,305.35 | 1.03% |
| AL-AMANAH ISLAMIC INVESTMENT BANK OF THE PHILS | 1,092,048.97 | 313,260,984.02 | 0.35% |
| ING BANK N.V. | 99.00 | 2,472,002,251.34 | 0.00% |
| BANK OF AMERICA N.A. | 0.00 | 2,091,322,952.20 | 0.00% |
| BDO PRIVATE BANK, INC. | 0.00 | 5,530,263,921.85 | 0.00% |
| CATHAY UNITED BANK CO LTD - MANILA BRANCH | 0.00 | 2,124,713,929.75 | 0.00% |
| DEUTSCHE BANK AG | 0.00 | 3,057,324,212.59 | 0.00% |
| INDUSTRIAL BANK OF KOREA MANILA BRANCH | 0.00 | 2,179,547,384.17 | 0.00% |
| ISLA BANK(A THRIFT BANK) INC | 0.00 | 663,130,458.76 | 0.00% |
| JP MORGAN CHASE BANK NATIONAL ASSN. | 0.00 | 1,312,606,965.00 | 0.00% |
| MEGA INT'L COMM'L BANK CO LTD | 0.00 | 1,881,123,285.21 | 0.00% |
| MIZUHO BANK LTD - MANILA BRANCH | 0.00 | 2,752,197,686.87 | 0.00% |
| SHINHAN BANK - MANILA BRANCH | 0.00 | 2,181,650,622.30 | 0.00% |
| SUMITOMO MITSUI BANKING CORPORATION-MANILA BRANCH | 0.00 | 12,894,505,582.44 | 0.00% |
| THE BNK OF TOKYO-MITSUBISHI UFJ LTD | 0.00 | 4,616,507,682.90 | 0.00% |
| UNITED OVERSEAS BANK LIMITED MANILA BRANCH | 0.00 | 2,410,100,420.13 | 0.00% |
| MERCHANTS SAVINGS & LOAN ASSN INC | NA | NA | NA |
| SAMPAGUITA SAVINGS BANK INC | NA | NA | NA |
| TONGYANG SAVINGS BANK INC | NA | NA | NA |
| Grand Total | 135,311,544,562.34 | 1,469,009,398,388.55 | 9.21% |
Are NPLs the Right Numbers to Look At?
In a financial crisis, a loan that is current can very well become past due, and a past due loan can become a non-performing loan, and a non-performing loan can become a loan write-off. The real number to look at are the loans that the banks and BSP already consider doubtful: Classified Loans.
Investopedia.com defines "Classified Loans" as:
"Any bank loan that is in danger of default. Classified loans have unpaid interest and principal outstanding, and it is unclear whether the bank will be able to recoup the loan proceeds from the borrower. Banks usually categorize such loans as adversely classified assets on their books."
The US Federal Deposit Insurance Corporation (FDIC), similar to our very own Philippine Deposit Insurance Corporation (PDIC), defines Classified Loans as:
"Loans classified Loss are considered uncollectible and of such little value that their continuance as bankable assets is not warranted. This classification does not mean that the loan has absolutely no recovery or salvage value but rather it is not practical or desirable to defer writing off this basically worthless asset even though partial recovery may be effected in the future."
In a financial crisis, a loan that is current can very well become past due, and a past due loan can become a non-performing loan, and a non-performing loan can become a loan write-off. The real number to look at are the loans that the banks and BSP already consider doubtful: Classified Loans.
Investopedia.com defines "Classified Loans" as:
"Any bank loan that is in danger of default. Classified loans have unpaid interest and principal outstanding, and it is unclear whether the bank will be able to recoup the loan proceeds from the borrower. Banks usually categorize such loans as adversely classified assets on their books."
The US Federal Deposit Insurance Corporation (FDIC), similar to our very own Philippine Deposit Insurance Corporation (PDIC), defines Classified Loans as:
"Loans classified Loss are considered uncollectible and of such little value that their continuance as bankable assets is not warranted. This classification does not mean that the loan has absolutely no recovery or salvage value but rather it is not practical or desirable to defer writing off this basically worthless asset even though partial recovery may be effected in the future."
In Circular #0247 dated May 19, 2000, BSP defines Classified Loans as loans which possess the following characteristics:
- Loans especially mentioned because they have potential weaknesses that deserve Management's close attention;
- Substandard Loans are loans which appear to involve a substantial and unreasonable degree of risk to the institution because of unfavorable record or unsatisfactory characteristics;
- Doubtful Loans are Substandard Loans with the added characteristics that existing facts, conditions, and values make collection or liquidation in full highly improbable and in which substantial loss is probable;
- Loss loans are loans that are considered uncollectible or worthless and are of such little value that their continuance as bankable assets is not warranted although the loans may have some recovery or salvage value.
- Loans Especially Mentioned: 5%
- Substandard - Secured: 6% - 25%
- Substandard - Unsecured: 25%
- Doubtful: 50%
- Loss: 100%
| Philippine Banking System | |||
| Classified Loans vs. NPLs | |||
| September 30, 2016 | |||
| Classified Loans | NPL | Classified Loans/NPL | |
| Bank | (In PHP) | (In PHP) | (In %) |
| ING BANK N.V. | 47,000,000.00 | 99.00 | 47474747.47% |
| BANK OF CHINA LIMITED-MANILA BRANCH | 15,848,707,884.16 | 189,040,895.91 | 8383.75% |
| CITIBANK, N.A. | 22,785,299,000.00 | 788,325,974.03 | 2890.34% |
| INTER-ASIA DEVELOPMENT BANK | 209,357,052.81 | 8,568,049.77 | 2443.46% |
| VILLAGE BANK INC (A THRIFT BANK) | 603,073,972.73 | 25,552,620.63 | 2360.13% |
| QUEZON COCONUT BANK INC (A THRIFT BANK) | 12,152,688.84 | 604,828.80 | 2009.28% |
| AL-AMANAH ISLAMIC INVESTMENT BANK OF THE PHILS | 14,086,000.00 | 1,092,048.97 | 1289.87% |
| YUANTA SAVINGS BANK PHILIPPINES INC | 1,024,348,354.98 | 103,695,194.06 | 987.85% |
| QUEEN CITY DEVELOPMENT BANK INC OR QUEENBANK A THRIFT BANK | 202,385,840.49 | 21,604,255.85 | 936.79% |
| BANK ONE SAVINGS AND TRUST CORP. | 205,970,031.66 | 23,103,734.39 | 891.50% |
| KOREA EXCHANGE BANK | 175,941,016.85 | 23,050,195.00 | 763.30% |
| TOWER DEVELOPMENT BANK | 54,319,448.67 | 7,396,175.06 | 734.43% |
| METROPOLITAN BANK & TCO | 19,055,851,661.68 | 2,689,483,124.87 | 708.53% |
| BANGKO KABAYAN INC | 220,320,151.19 | 34,185,431.96 | 644.49% |
| PHIL TRUST COMPANY | 5,841,000,000.00 | 1,179,597,115.48 | 495.17% |
| CORDILLERA SAVINGS BANK INC | 59,782,351.93 | 13,254,102.64 | 451.05% |
| SECURITY BANK CORP | 9,018,000,000.00 | 2,232,110,933.80 | 404.01% |
| RIZAL COMM'L BANKING CORP | 7,321,622,960.92 | 1,939,990,833.94 | 377.41% |
| PHIL NATIONAL BANK | 31,761,472,087.58 | 8,518,905,151.86 | 372.84% |
| MALAYAN BANK SAVINGS AND MORT BANK INC | 1,221,032,114.50 | 335,052,548.11 | 364.43% |
| FARMERS SAVINGS & LOAN BANK INC | 136,247,915.39 | 37,783,485.46 | 360.60% |
| DUMAGUETE CITY DEV BANK INC | 117,490,000.00 | 32,589,350.10 | 360.52% |
| BANK OF COMMERCE | 6,285,939,163.38 | 1,855,644,519.55 | 338.75% |
| PHIL SAVINGS BANK | 13,459,363,941.73 | 4,475,439,320.31 | 300.74% |
| CHINA BANKING CORP | 13,726,884,623.81 | 4,609,661,975.35 | 297.79% |
| BDO UNIBANK INC | 43,544,934,195.49 | 15,455,700,305.05 | 281.74% |
| UNION BANK OF THE PHILS | 21,878,011,030.89 | 7,951,594,741.54 | 275.14% |
| ASIA UNITED BANK CORPORATION | 5,146,941,679.70 | 1,875,670,487.58 | 274.41% |
| METRO CEBU PUBLIC SAVINGS BANK | 69,370,057.76 | 25,320,036.75 | 273.97% |
| UNITED COCONUT PLANTERS BANK | 17,194,349,897.69 | 6,312,050,076.31 | 272.41% |
| BATAAN DEVELOPMENT BANK | 102,400,000.00 | 40,443,319.15 | 253.19% |
| CENTURY SAVINGS BANK CORPORATION | 86,759,396.79 | 35,947,320.47 | 241.35% |
| MAYBANK PHILIPPINES INC | 5,706,664,523.85 | 2,404,370,029.81 | 237.35% |
| FIRST CONSOLIDATED BANK INC (A PDB) | 1,024,528,452.58 | 448,961,979.40 | 228.20% |
| LAND BANK OF THE PHILIPPINES | 18,259,498,896.97 | 8,084,444,246.85 | 225.86% |
| UCPB SAVINGS BANK | 2,181,355,529.00 | 985,724,574.61 | 221.29% |
| ROBINSONS BANK CORPORATION | 1,526,179,000.00 | 713,818,768.00 | 213.80% |
| PHILIPPINE VETERANS BANK | 3,836,350,040.61 | 1,920,148,532.73 | 199.79% |
| LEGAZPI SAVINGS BANK INC | 883,980,000.00 | 450,487,116.92 | 196.23% |
| PENBANK INC (A PDB) (FORMERLY: PENINSULA RB INC) | 296,242,091.71 | 151,518,194.30 | 195.52% |
| RCBC SAVINGS BANK INC | 6,940,955,925.00 | 3,563,204,986.32 | 194.80% |
| BANK OF THE PHIL ISLANDS | 14,801,896,325.95 | 7,996,789,257.69 | 185.10% |
| PRODUCERS SAVINGS BANK CORPORATION | 753,621,689.97 | 426,272,143.49 | 176.79% |
| PHIL STAR DEVELOPMENT BANK INC | 33,908,809.09 | 20,032,181.12 | 169.27% |
| OPTIMUM DEVELOPMENT BANK INC | 185,189,526.98 | 109,784,239.74 | 168.68% |
| PHILIPPINE RESOURCES SAVINGS BANKING CORPORATION (PR SAVINGS | 2,418,782,266.67 | 1,472,388,536.66 | 164.28% |
| PHILIPPINE BUSINESS BANK INC A SAVINGS BANK | 2,367,490,000.00 | 1,467,430,873.86 | 161.34% |
| PHIL POSTAL SAVINGS BANK INC | 2,534,624,128.80 | 1,640,187,915.83 | 154.53% |
| DUNGGANON BANK (A MICROFINANCE THRIFT BANK) INC | 36,335,937.51 | 23,839,161.85 | 152.42% |
| CHINA BANK SAVINGS INC | 6,852,660,489.96 | 4,502,299,081.60 | 152.20% |
| DEVELOPMENT BANK OF THE PHIL | 10,226,118,883.42 | 6,851,069,030.92 | 149.26% |
| BANK OF MAKATI (A SAVINGS BANK) INC | 2,551,784,516.35 | 1,715,453,783.07 | 148.75% |
| WORLD PARTNERS BANK (A THRIFT BANK) | 187,799,679.96 | 137,429,309.44 | 136.65% |
| MARITIME SAVINGS BANK CORPORATION | 37,184,837.32 | 27,430,460.04 | 135.56% |
| BPI FAMILY SAVINGS BANK INC | 10,993,600,193.21 | 8,123,032,981.64 | 135.34% |
| STERLING BANK OF ASIA INC (A SAVINGS BANK) | 1,313,560,000.00 | 972,054,930.79 | 135.13% |
| BPI DIRECT SAVINGS BANK INC | 259,013,705.05 | 191,837,077.75 | 135.02% |
| PNB SAVINGS BANK | 964,941,290.93 | 768,619,166.47 | 125.54% |
| LUZON DEVELOPMENT BANK | 630,256,316.41 | 517,066,469.62 | 121.89% |
| EQUICOM SAVINGS BANK INC | 767,785,477.86 | 636,811,214.24 | 120.57% |
| LIFE SAVINGS BANK INC | 16,228,158.28 | 13,535,320.94 | 119.89% |
| CITY SAVINGS BANK INC | 1,633,658,263.08 | 1,404,431,487.61 | 116.32% |
| UNIVERSITY SAVINGS BANK INC | 100,558,998.28 | 89,865,132.18 | 111.90% |
| CTBC BANK (PHILIPPINES) CORP | 535,248,141.84 | 485,595,806.28 | 110.23% |
| STANDARD CHARTERED BANK | 2,430,141,947.52 | 2,277,960,050.89 | 106.68% |
| EAST WEST BANKING CORP | 8,692,840,178.42 | 8,502,163,356.59 | 102.24% |
| SUN SAVINGS BANK INC | 15,632,062.04 | 15,302,238.90 | 102.16% |
| 1ST VALLEY BANK INC A DEVELOPMENT BANK | 454,388,480.71 | 447,820,468.00 | 101.47% |
| LEMERY SAVINGS & LOAN BANK, INC. | 3,508,364.52 | 3,502,078.88 | 100.18% |
| BANGKOK BANK PUBLIC CO LTD | 45,436,941.43 | 45,436,941.43 | 100.00% |
| BATAAN SAVINGS AND LOAN BANK | 1,889,208.47 | 1,889,208.47 | 100.00% |
| BPI GLOBE BANKO INC A SAVINGS BANK | 344,373,998.27 | 344,373,998.27 | 100.00% |
| HIYAS BANKING CORPORATION | 13,845,821.64 | 13,845,821.64 | 100.00% |
| MALASIQUI PROGRESSIVE SLB, INC | 8,390,479.25 | 8,390,479.25 | 100.00% |
| OPPORTUNITY KAUSWAGAN BANK INC (A MICROFINANCE THRIFT BANK) | 100,478,233.20 | 100,478,233.20 | 100.00% |
| PAMPANGA DEVELOPMENT BANK | 47,394,335.63 | 54,092,503.50 | 87.62% |
| WEALTH DEVELOPMENT BANK CORPORATION | 168,239,239.00 | 252,365,406.44 | 66.66% |
| HONGKONG & SHANGHAI BANKING CORP | 440,764,978.22 | 806,160,007.79 | 54.67% |
| HSBC SAVINGS BANK(PHILS) INC | 12,105,944.12 | 61,066,188.09 | 19.82% |
| PHIL BANK OF COMMUNICATIONS | 111,033,320.42 | 2,283,081,027.49 | 4.86% |
| ANZ BANKING GROUP LTD | 1,278,160.40 | 405,519,723.90 | 0.32% |
| BUSINESS AND CONSUMERS BANK (A DB) | 0.00 | 15,921,373.30 | 0.00% |
| CARD SME BANK INC A THRIFT BANK | 0.00 | 45,647,812.97 | 0.00% |
| CITYSTATE SAVINGS BANK INC | 0.00 | 140,511,602.44 | 0.00% |
| ENTERPRISE BANK INC (A THRIFT BANK) | 0.00 | 198,058,282.51 | 0.00% |
| MICROFINANCE MAXIMUM SB INC | 0.00 | 5,801,774.13 | 0.00% |
| NORTHPOINT DEV'T BANK INC | 0.00 | 100,382,035.16 | 0.00% |
| PACIFIC ACE SAVINGS BANK INC | 0.00 | 3,201,492.69 | 0.00% |
| THE PALAWAN BANK (PALAWAN DB) INC | 0.00 | 20,180,212.89 | 0.00% |
| BANK OF AMERICA N.A. | 5,514,000.00 | 0.00 | NA |
| BDO PRIVATE BANK, INC. | 0.00 | 0.00 | NA |
| CATHAY UNITED BANK CO LTD - MANILA BRANCH | 0.00 | 0.00 | NA |
| DEUTSCHE BANK AG | 0.00 | 0.00 | NA |
| INDUSTRIAL BANK OF KOREA MANILA BRANCH | 0.00 | 0.00 | NA |
| ISLA BANK(A THRIFT BANK) INC | 0.00 | 0.00 | NA |
| JP MORGAN CHASE BANK NATIONAL ASSN. | 0.00 | 0.00 | NA |
| MEGA INT'L COMM'L BANK CO LTD | 1,031,431,578.00 | 0.00 | NA |
| MERCHANTS SAVINGS & LOAN ASSN INC | NA | NA | NA |
| MIZUHO BANK LTD - MANILA BRANCH | 230,576,340.62 | 0.00 | NA |
| SAMPAGUITA SAVINGS BANK INC | NA | NA | NA |
| SHINHAN BANK - MANILA BRANCH | 0.00 | 0.00 | NA |
| SUMITOMO MITSUI BANKING CORPORATION-MANILA BRANCH | 0.00 | 0.00 | NA |
| THE BNK OF TOKYO-MITSUBISHI UFJ LTD | 48,015,000.00 | 0.00 | NA |
| TONGYANG SAVINGS BANK INC | NA | NA | NA |
| UNITED OVERSEAS BANK LIMITED MANILA BRANCH | 0.00 | 0.00 | NA |
| Grand Total | 352,447,680,230.14 | 135,311,544,562.34 | 260.47% |
This level of classified loans should be measured against the bank's "capital cushion" or its ability to absorb losses. Capital Cushion is normally defined as a bank's "Tangible Common Equity" plus its Loan Loss Reserves. Tangible Common Equity (TCE) refers to the subset of shareholders' equity that is not preferred equity and not intangible assets. So it excludes such items as Hybrid equity (like preferred shares) and goodwill.
By this measure, the level of "Classified Loans and other Risky Assets" amounts to Php 352.45 billion or 23.55% of the Php 1.50 trillion in Total Capital Cushion of Philippine Banks as of September 30, 2016.
| Philippine Banking System | |||
| Classified Loans as % of Total Capital Cushion | |||
| September 30, 2016 | |||
| Classified Loans | Total Capital Cushion | Classified Loans/Total Capital Cushion | |
| Bank | (In Php) | (In Php) | (In %) |
| VILLAGE BANK INC (A THRIFT BANK) | 603,073,972.73 | 98,494,178.93 | 612.29% |
| BANK OF CHINA LIMITED-MANILA BRANCH | 15,848,707,884.16 | 2,689,164,904.41 | 589.35% |
| INTER-ASIA DEVELOPMENT BANK | 209,357,052.81 | 60,584,384.65 | 345.56% |
| PHIL POSTAL SAVINGS BANK INC | 2,534,624,128.80 | 1,391,970,544.82 | 182.09% |
| UNITED COCONUT PLANTERS BANK | 17,194,349,897.69 | 11,498,031,004.25 | 149.54% |
| CITIBANK, N.A. | 22,785,299,000.00 | 18,852,261,103.84 | 120.86% |
| BATAAN DEVELOPMENT BANK | 102,400,000.00 | 95,255,014.64 | 107.50% |
| MALAYAN BANK SAVINGS AND MORT BANK INC | 1,221,032,114.50 | 1,180,703,393.55 | 103.42% |
| METRO CEBU PUBLIC SAVINGS BANK | 69,370,057.76 | 68,780,352.78 | 100.86% |
| FARMERS SAVINGS & LOAN BANK INC | 136,247,915.39 | 135,581,798.70 | 100.49% |
| LEGAZPI SAVINGS BANK INC | 883,980,000.00 | 882,809,874.96 | 100.13% |
| EQUICOM SAVINGS BANK INC | 767,785,477.86 | 802,760,372.06 | 95.64% |
| PHILIPPINE RESOURCES SAVINGS BANKING CORPORATION (PR SAVINGS | 2,418,782,266.67 | 2,594,212,149.30 | 93.24% |
| YUANTA SAVINGS BANK PHILIPPINES INC | 1,024,348,354.98 | 1,101,801,279.40 | 92.97% |
| LUZON DEVELOPMENT BANK | 630,256,316.41 | 681,879,488.39 | 92.43% |
| WORLD PARTNERS BANK (A THRIFT BANK) | 187,799,679.96 | 218,147,250.07 | 86.09% |
| BPI GLOBE BANKO INC A SAVINGS BANK | 344,373,998.27 | 458,848,427.45 | 75.05% |
| UCPB SAVINGS BANK | 2,181,355,529.00 | 2,930,976,589.08 | 74.42% |
| CHINA BANK SAVINGS INC | 6,852,660,489.96 | 9,231,129,298.27 | 74.23% |
| OPPORTUNITY KAUSWAGAN BANK INC (A MICROFINANCE THRIFT BANK) | 100,478,233.20 | 154,721,453.56 | 64.94% |
| PHIL SAVINGS BANK | 13,459,363,941.73 | 22,246,259,757.61 | 60.50% |
| PENBANK INC (A PDB) (FORMERLY: PENINSULA RB INC) | 296,242,091.71 | 501,085,850.93 | 59.12% |
| RCBC SAVINGS BANK INC | 6,940,955,925.00 | 11,784,892,977.02 | 58.90% |
| PHILIPPINE VETERANS BANK | 3,836,350,040.61 | 6,882,691,056.50 | 55.74% |
| MARITIME SAVINGS BANK CORPORATION | 37,184,837.32 | 71,452,966.96 | 52.04% |
| MEGA INT'L COMM'L BANK CO LTD | 1,031,431,578.00 | 2,105,844,697.67 | 48.98% |
| BANGKO KABAYAN INC | 220,320,151.19 | 455,558,644.74 | 48.36% |
| PRODUCERS SAVINGS BANK CORPORATION | 753,621,689.97 | 1,612,656,579.39 | 46.73% |
| CORDILLERA SAVINGS BANK INC | 59,782,351.93 | 134,785,913.82 | 44.35% |
| DUMAGUETE CITY DEV BANK INC | 117,490,000.00 | 270,074,160.98 | 43.50% |
| STERLING BANK OF ASIA INC (A SAVINGS BANK) | 1,313,560,000.00 | 3,112,303,401.13 | 42.21% |
| TOWER DEVELOPMENT BANK | 54,319,448.67 | 128,821,638.67 | 42.17% |
| MAYBANK PHILIPPINES INC | 5,706,664,523.85 | 14,005,171,618.14 | 40.75% |
| BPI FAMILY SAVINGS BANK INC | 10,993,600,193.21 | 28,622,351,260.29 | 38.41% |
| WEALTH DEVELOPMENT BANK CORPORATION | 168,239,239.00 | 450,764,257.74 | 37.32% |
| BANK OF MAKATI (A SAVINGS BANK) INC | 2,551,784,516.35 | 6,959,682,748.89 | 36.67% |
| UNIVERSITY SAVINGS BANK INC | 100,558,998.28 | 276,973,352.60 | 36.31% |
| PHIL STAR DEVELOPMENT BANK INC | 33,908,809.09 | 94,193,073.16 | 36.00% |
| BANK ONE SAVINGS AND TRUST CORP. | 205,970,031.66 | 575,561,384.50 | 35.79% |
| BANK OF COMMERCE | 6,285,939,163.38 | 17,903,872,851.40 | 35.11% |
| UNION BANK OF THE PHILS | 21,878,011,030.89 | 62,404,019,383.94 | 35.06% |
| PAMPANGA DEVELOPMENT BANK | 47,394,335.63 | 155,826,308.90 | 30.41% |
| QUEEN CITY DEVELOPMENT BANK INC OR QUEENBANK A THRIFT BANK | 202,385,840.49 | 680,011,705.67 | 29.76% |
| DUNGGANON BANK (A MICROFINANCE THRIFT BANK) INC | 36,335,937.51 | 122,172,520.67 | 29.74% |
| 1ST VALLEY BANK INC A DEVELOPMENT BANK | 454,388,480.71 | 1,578,449,331.56 | 28.79% |
| STANDARD CHARTERED BANK | 2,430,141,947.52 | 8,465,797,581.97 | 28.71% |
| PHIL NATIONAL BANK | 31,761,472,087.58 | 110,733,779,078.20 | 28.68% |
| PHIL TRUST COMPANY | 5,841,000,000.00 | 21,870,665,739.27 | 26.71% |
| FIRST CONSOLIDATED BANK INC (A PDB) | 1,024,528,452.58 | 3,977,305,800.36 | 25.76% |
| EAST WEST BANKING CORP | 8,692,840,178.42 | 35,017,063,657.03 | 24.82% |
| LIFE SAVINGS BANK INC | 16,228,158.28 | 67,061,879.66 | 24.20% |
| LAND BANK OF THE PHILIPPINES | 18,259,498,896.97 | 76,380,341,399.61 | 23.91% |
| PHILIPPINE BUSINESS BANK INC A SAVINGS BANK | 2,367,490,000.00 | 10,183,864,044.55 | 23.25% |
| CHINA BANKING CORP | 13,726,884,623.81 | 59,196,817,840.27 | 23.19% |
| DEVELOPMENT BANK OF THE PHIL | 10,226,118,883.42 | 48,006,013,548.91 | 21.30% |
| OPTIMUM DEVELOPMENT BANK INC | 185,189,526.98 | 872,676,014.05 | 21.22% |
| ASIA UNITED BANK CORPORATION | 5,146,941,679.70 | 24,331,987,761.55 | 21.15% |
| QUEZON COCONUT BANK INC (A THRIFT BANK) | 12,152,688.84 | 59,221,680.74 | 20.52% |
| BDO UNIBANK INC | 43,544,934,195.49 | 222,999,322,839.75 | 19.53% |
| CITY SAVINGS BANK INC | 1,633,658,263.08 | 8,388,672,790.43 | 19.47% |
| BPI DIRECT SAVINGS BANK INC | 259,013,705.05 | 1,770,071,069.57 | 14.63% |
| MALASIQUI PROGRESSIVE SLB, INC | 8,390,479.25 | 59,947,162.60 | 14.00% |
| RIZAL COMM'L BANKING CORP | 7,321,622,960.92 | 60,934,061,092.34 | 12.02% |
| ROBINSONS BANK CORPORATION | 1,526,179,000.00 | 13,274,165,117.42 | 11.50% |
| KOREA EXCHANGE BANK | 175,941,016.85 | 1,582,187,086.00 | 11.12% |
| SUN SAVINGS BANK INC | 15,632,062.04 | 158,182,089.41 | 9.88% |
| METROPOLITAN BANK & TCO | 19,055,851,661.68 | 193,503,073,725.35 | 9.85% |
| SECURITY BANK CORP | 9,018,000,000.00 | 93,222,924,135.67 | 9.67% |
| BANK OF THE PHIL ISLANDS | 14,801,896,325.95 | 161,652,937,291.06 | 9.16% |
| CENTURY SAVINGS BANK CORPORATION | 86,759,396.79 | 969,488,170.41 | 8.95% |
| PNB SAVINGS BANK | 964,941,290.93 | 11,680,844,277.56 | 8.26% |
| HIYAS BANKING CORPORATION | 13,845,821.64 | 174,414,155.90 | 7.94% |
| MIZUHO BANK LTD - MANILA BRANCH | 230,576,340.62 | 3,071,984,357.75 | 7.51% |
| CTBC BANK (PHILIPPINES) CORP | 535,248,141.84 | 7,441,382,931.55 | 7.19% |
| LEMERY SAVINGS & LOAN BANK, INC. | 3,508,364.52 | 79,492,740.49 | 4.41% |
| AL-AMANAH ISLAMIC INVESTMENT BANK OF THE PHILS | 14,086,000.00 | 354,210,597.42 | 3.98% |
| BATAAN SAVINGS AND LOAN BANK | 1,889,208.47 | 60,558,902.93 | 3.12% |
| HONGKONG & SHANGHAI BANKING CORP | 440,764,978.22 | 14,185,618,654.53 | 3.11% |
| ING BANK N.V. | 47,000,000.00 | 2,567,469,911.66 | 1.83% |
| BANGKOK BANK PUBLIC CO LTD | 45,436,941.43 | 3,438,679,927.00 | 1.32% |
| PHIL BANK OF COMMUNICATIONS | 111,033,320.42 | 10,809,644,841.50 | 1.03% |
| THE BNK OF TOKYO-MITSUBISHI UFJ LTD | 48,015,000.00 | 4,967,420,166.75 | 0.97% |
| HSBC SAVINGS BANK(PHILS) INC | 12,105,944.12 | 1,940,149,361.55 | 0.62% |
| BANK OF AMERICA N.A. | 5,514,000.00 | 2,123,761,205.20 | 0.26% |
| ANZ BANKING GROUP LTD | 1,278,160.40 | 4,421,958,168.30 | 0.03% |
| BDO PRIVATE BANK, INC. | 0.00 | 5,064,379,487.11 | 0.00% |
| BUSINESS AND CONSUMERS BANK (A DB) | 0.00 | 97,578,376.44 | 0.00% |
| CARD SME BANK INC A THRIFT BANK | 0.00 | 603,735,496.45 | 0.00% |
| CATHAY UNITED BANK CO LTD - MANILA BRANCH | 0.00 | 2,134,582,377.08 | 0.00% |
| CITYSTATE SAVINGS BANK INC | 0.00 | 628,667,648.72 | 0.00% |
| DEUTSCHE BANK AG | 0.00 | 2,144,753,150.08 | 0.00% |
| ENTERPRISE BANK INC (A THRIFT BANK) | 0.00 | 318,128,721.32 | 0.00% |
| INDUSTRIAL BANK OF KOREA MANILA BRANCH | 0.00 | 2,179,577,546.63 | 0.00% |
| ISLA BANK(A THRIFT BANK) INC | 0.00 | 667,204,109.68 | 0.00% |
| JP MORGAN CHASE BANK NATIONAL ASSN. | 0.00 | 1,406,989,114.78 | 0.00% |
| MICROFINANCE MAXIMUM SB INC | 0.00 | 44,821,096.62 | 0.00% |
| NORTHPOINT DEV'T BANK INC | 0.00 | 416,546,047.01 | 0.00% |
| PACIFIC ACE SAVINGS BANK INC | 0.00 | 73,307,008.59 | 0.00% |
| SHINHAN BANK - MANILA BRANCH | 0.00 | 2,204,319,050.00 | 0.00% |
| SUMITOMO MITSUI BANKING CORPORATION-MANILA BRANCH | 0.00 | 13,065,157,352.82 | 0.00% |
| THE PALAWAN BANK (PALAWAN DB) INC | 0.00 | 52,757,089.98 | 0.00% |
| UNITED OVERSEAS BANK LIMITED MANILA BRANCH | 0.00 | 2,406,778,051.65 | 0.00% |
| MERCHANTS SAVINGS & LOAN ASSN INC | 0.00 | NA | |
| SAMPAGUITA SAVINGS BANK INC | 0.00 | NA | |
| TONGYANG SAVINGS BANK INC | 0.00 | NA | |
| Grand Total | 352,495,695,230.14 | 1,496,768,090,827.22 | 23.55% |
Stress Test Scenarios
Aggregate
So how will a 10%, 20%, 30%, 40%, and even 50% write-off of Classified Loans affect the Total Capital Cushion of the Philippine Banking System?
In the aggregate, if Classified Loans amount to 23.55% of the banking system's Total Capital Cushion, then it follows that a 10% write-off of Classified Loans will reduce the total capital by 2.35% and a 50% write-off of classified loans will reduce the banking system's Total Capital Cushion by 11.78%.
Individual Banks
A 10% write-off of Classified Loans would severely impact (by 30% or more) the Total Capital Cushion of three banks (severely affected banks highlighted in yellow).
Aggregate
So how will a 10%, 20%, 30%, 40%, and even 50% write-off of Classified Loans affect the Total Capital Cushion of the Philippine Banking System?
In the aggregate, if Classified Loans amount to 23.55% of the banking system's Total Capital Cushion, then it follows that a 10% write-off of Classified Loans will reduce the total capital by 2.35% and a 50% write-off of classified loans will reduce the banking system's Total Capital Cushion by 11.78%.
Individual Banks
A 10% write-off of Classified Loans would severely impact (by 30% or more) the Total Capital Cushion of three banks (severely affected banks highlighted in yellow).
- Village Bank Inc (61.23% reduction in Total Capital Cushion)
- Bank of China Limited - Manila Branch (58.94% reduction in Total Capital Cushion)
- Inter-Asia Development Bank (34.56% reduction in Total Capital Cushion)
A 20% write-off of Classified Loans will totally wipe out the Total Capital Cushion of two banks and severely impact the Total Capital Cushion of two more banks:
- Village Bank Inc (122.46% reduction in Total Capital Cushion)
- Bank of China Limited - Manila Branch (117.87% reduction in Total Capital Cushion)
- Inter-Asia Development Bank (69.11% reduction in Total Capital Cushion)
- Philippine Postal Savings Bank Inc (36.42% reduction in Total Capital Cushion)
A 30% write-off of Classified Loans will totally wipe out the Total Capital Cushion of three banks and severely affect (reduce by 30% or more) the Total Capital Cushion of eight other banks:
- Village Bank Inc (183.69% reduction in Total Capital Cushion)
- Bank of China Limited - Manila Branch (176.81% reduction in Total Capital Cushion)
- Inter-Asia Development Bank (103.67% reduction in Total Capital Cushion)
- Philippine Postal Savings Bank Inc (54.63% reduction in Total Capital Cushion)
- United Coconut Planters Bank (44.86% reduction in Total Capital Cushion)
- Citibank, N.A. (36.26% reduction in Total Capital Cushion)
- Bataan Development Bank (32.25% reduction in Total Capital Cushion)
- Malayan Bank Savings and Mortgage Bank Inc (31.02% reduction in Total Capital Cushion)
- Metro Cebu Public Savings Bank (30.26% reduction in Total Capital Cushion)
- Farmers Savings & Loan Bank Inc (30.15% reduction in Total Capital Cushion)
- Legazpi Savings Bank Inc (30.04% reduction in Total Capital Cushion)
A 40% write-off of Classified Loans will totally wipe out the Total Capital Cushion of three banks and severely affect (reduce by 30% or more) the Total Capital Cushion of fourteen more banks:
- Village Bank Inc (244.92% reduction in Total Capital Cushion)
- Bank of China Limited - Manila Branch (235.74% reduction in Total Capital Cushion)
- Inter-Asia Development Bank (138.23% reduction in Total Capital Cushion)
- Philippine Postal Savings Bank Inc (72.84% reduction in Total Capital Cushion)
- United Coconut Planters Bank (59.82% reduction in Total Capital Cushion)
- Citibank, N.A. (48.34% reduction in Total Capital Cushion)
- Bataan Development Bank (43.00% reduction in Total Capital Cushion)
- Malayan Bank Savings and Mortgage Bank Inc (41.37% reduction in Total Capital Cushion)
- Metro Cebu Public Savings Bank (40.34% reduction in Total Capital Cushion)
- Farmers Savings & Loan Bank Inc (40.20% reduction in Total Capital Cushion)
- Legazpi Savings Bank Inc (40.05% reduction in Total Capital Cushion)
- Equicom Savings Bank Inc (38.26% reduction in Total Capital Cushion)
- Philippine Resources Savings Banking Corporation (37.30% reduction in Total Capital Cushion)
- Yuanta Savings Bank Philippines Inc (37.19% reduction in Total Capital Cushion)
- Luzon Development Bank (36.97% reduction in Total Capital Cushion)
- World Partners Bank (34.44% reduction in Total Capital Cushion)
- BPI Globe Banko Inc (30.02% reduction in Total Capital Cushion)
A 50% write-off of Classified Loans will totally wipe out the Total Capital Cushion of three banks and severely affect (reduce by 30% or more) the Total Capital Cushion of eighteen more banks:
- Village Bank Inc (306.15% reduction in Total Capital Cushion)
- Bank of China Limited - Manila Branch (294.68% reduction in Total Capital Cushion)
- Inter-Asia Development Bank (172.78% reduction in Total Capital Cushion)
- Philippine Postal Savings Bank Inc (91.04% reduction in Total Capital Cushion)
- United Coconut Planters Bank (74.77% reduction in Total Capital Cushion)
- Citibank, N.A. (60.43% reduction in Total Capital Cushion)
- Bataan Development Bank (53.75% reduction in Total Capital Cushion)
- Malayan Bank Savings and Mortgage Bank Inc (51.71% reduction in Total Capital Cushion)
- Metro Cebu Public Savings Bank (50.43% reduction in Total Capital Cushion)
- Farmers Savings & Loan Bank Inc (50.25% reduction in Total Capital Cushion)
- Legazpi Savings Bank Inc (50.07% reduction in Total Capital Cushion)
- Equicom Savings Bank Inc (47.82% reduction in Total Capital Cushion)
- Philippine Resources Savings Banking Corporation (46.62% reduction in Total Capital Cushion)
- Yuanta Savings Bank Philippines Inc (46.49% reduction in Total Capital Cushion)
- Luzon Development Bank (46.21% reduction in Total Capital Cushion)
- World Partners Bank (43.04% reduction in Total Capital Cushion)
- BPI Globe Banko Inc (37.53% reduction in Total Capital Cushion)
- UCPB Savings Bank (37.21% reduction in Total Capital Cushion)
- China Bank Savings Inc (37.12% reduction in Total Capital Cushion)
- Opportunity Kauswagan Bank Inc (32.47% reduction in Total Capital Cushion)
- Philippine Savings Bank (30.25% reduction in Total Capital Cushion)
Please bear in mind that a number of these banks are already very weak and are in distress. Please see a previous blog post: "The Top Distressed Philippine Banks as of September 30, 2016". Moreover, their capital can be overstated. See a previous blog post "Overstated Capital of Philippine Banks as of September 30, 2016". As such, any reduction in their capital cushion could knock down an already weak bank.
Source: www.bsp.gov.ph
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