Search This Blog

Thursday, July 27, 2017

Another year, Another month, Another Philippine Bank's Reputation Lies in Tatters

Another year, another month, another bank's reputation lies in tatters. And the pace is accelerating.

First there was the Great Bangladesh Central Bank Heist of 2016 in which RCBC had a starring role. The case raised the country's international profile immensely - but not in a good way. It revealed what many cross-border criminals already knew: that the Philippines was one of the top money-laundering capitals of the world.

But what seemed very appalling was not just the source of the stolen money (the Bangladesh Central Bank) nor the amount stolen (USD $81 million) but also the fact that a mere RCBC branch manager can create fictitious bank accounts in the name of an existing bank client without him knowing about it and then using those very bank accounts to funnel illegally obtained funds.

Lost Culture of Compliance

There is also something that former RCBC President Lorenzo Tan said that foreshadowed subsequent "incidents" in the Philippine Banking industry. 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."

In other words, expeditiousness and efficiency triumphed over compliance and internal controls. When growth and profit are paramount, compliance and internal controls get run over. Every. Single. Time.

Banks are normally very staid, very conservative, very boring institutions that are known to dot every "i" and cross every "t". They have to be because they safeguard the public's money and are highly regulated institutions.  But that "culture of compliance" seems to have been lost not just in RCBC in 2016 but in the rest of the Philippine banking system.

And the chickens are now coming home to roost.

In the first week of June 2017, a programmer in BPI bypassed procedures made changes to a "live" computer banking system which resulted in a system wide shutdown for almost two days. This incident was closely followed by a similar incident two weeks later at Security Bank as well as a series of ATM skimming incidents at BDO Unibank.

Then reports of outright thefts started coming in. On the last day of June 2017, a mere cash unit head at the Ortigas branch of Union Bank of the Philippines did an unauthorized transfer of Php 17 million (US$ 340 K) to another branch and was promptly arrested for theft.


Maria Victoria Lopez of Metrobank


Metrobank Fraud

A little more than two weeks later, Ma. Victoria Lopez, a Vice President for Corporate Services at Metrobank was arrested for internal fraud that involved at least Php 900 million (US$ 18 million) to up Php 2.5 billion (US$ 50 million). Unlike RCBC's Maia Santos-Deguito, not only did she created fake bank accounts in the name of a legitimate client, Universal Robina Corporation (URC), she also created fake loans from Metrobank to URC that URC absolutely had no knowledge of.

The scale and sophistication of the fraud is mind-blowing, to say the least. Not only does Metrobank not know how much was lost, they also do not know how long it has been going on, or who else was in on the fraud. The fraud should have triggered red flags on so many levels. Here are some, to name a few:


  1. The client, URC, should have been receiving reports on its loan balances every month and those balances should have reflected the fake loans.
  2. Metrobank's Management Information System should have been generating reports that included the fake loans.
  3. Metrobank's Treasury Department, which disburses the loans in tranches, would have been generating reports that URC was receiving the said loans.
  4. Metrobank's Legal Department would have had a copy of the fraudulent Promissory Notes (P/Ns) and Loan Documents. Moreover, the said documents would have been signed by both the client and bank officers and witnessed by bank officers/legal staff as well as by client finance/legal personnel.
  5. Metrobank's Relationship Manager should have noticed that the client was availing of an extra Php 900 million to Php 2.5 billion in loans.

It is hard to believe that a single Vice President could bypass so many internal processes in the bank without the connivance of others, namely: 1) her boss; 2) her subordinates; etc. It's like a "Murder in the Orient Express" plot - either no one else did it or everyone else did it. Either way, Metrobank seems to be playing fast and loose with its assets and ditto for the other banks.

What's truly confounding is than Metrobank is a well-established bank, having been around for almost 55 years and it is the second largest bank in the country. It survived numerous booms and busts including a severe economic recession in the waning years of the Marcos regime as well as the contagion of the Asian Financial Crises. Given that, it's internal controls and operating procedures must be very well-established, if not set in stone.

Possible Culprit? Rapid Industry Growth

What has been left unsaid is the possible role that rapid credit growth has played in the loss of this "culture of compliance" throughout the banking system. The Philippine economy has been on a tear for almost ten years now and domestic credit has grown even faster than the economy.  According to the World Bank, Philippine domestic credit as a percentage of GDP has grown from 47.44% of GDP in 2007 to around 63.49% of GDP as of 2016, eclipsing the 53.87% posted in 1983 (peak of the Marcos years). However, this ratio is still significantly below the 1997 peak of 78.54% during the Asian Financial Crisis, so it still has room to run.


Source: www.worldbank.org

On an absolute basis, the Total Loan Portfolio of Philippine Universal and Commercial Banks (UKBs) - the space that Metrobank competes in- has been growing very rapidly. As of the first quarter of 2017, the TLP of UKBs stood at Php 6.75 trillion or a little less than 2 1/2 times what it was in 2010 (Php 2.80 trillion).  Growth in TLP has been compounding at 15.11% a year since 2010 or almost 40% faster than its historical CAGR of 11.08% from 1983 to 2017 Q1.


Source: www.bsp.gov.ph

Metrobank was privy to that boom and grew even faster than the industry. Metrobank's TLP grew from Php 299.34 billion as of December 2010 to Php 929.39 billion as of 2017 Q1, for a CAGR of 19.87% versus an industry CAGR of 15.11% for the same period. In other words, Metrobank's TLP grew over 30% faster than the banking industry during the same period (2010 to 2017 Q1) and almost 80% than the banking industry's historical CAGR from 1983 to 2017 Q1.


Source: Metrobank's Statements of Condition 2010 to 2017 Q1

So when the industry itself is growing very fast and your firm is growing even faster than the industry, things are bound to break. At that point, these staid banks act more like fast-growing startups and less like the conservative and sometimes hidebound financial institutions they once were. Compliance, internal controls tend to get cast aside in the name of expediency, profit, and market share even though bank checks and balances are well established within the industry and in your own firm. This leaves openings for bank officers and staff with criminal intent to perpetuate fraud. Hence, the blow-ups in RCBC, Union Bank, and Metrobank.

Reminiscent of US Chain of Title Mess and Subsequent Robo-signing Scandal

A similar breakdown of well established procedures took place during the US Real Estate Boom that took place in the early 2000's. Mortgage origination and securitization grew so fast that corners were cut in the Chain of Title process even though such processes date back to as early as 1677. As a result, there was a widespread failure to convey the mortgage documents, notes, and borrower IOUs to the securitization trusts, leaving the securitization trusts essentially unsecured and leaving them with no ability to foreclose on defaulted borrowers.  To remedy this deficiency, many mortgage servicers resorted to the act of robo-signing and inserting fake and ante-dated documentation into the trusts well after the trusts were formed.


Everyone, from the bank originators to the investment bank packagers, got hooked on the easy profits, and kept pushing for ways to streamline the process, to both increase their profits and increase the size of the potential market. The biggest problems result from cutting corners, including the failure of the deal sponsors to adhere to their own agreements with investors, that led to this mess. Securitization had existed since the 1970s; MERS, one of the biggest culprits in the uncertainties over title, did not become a serious player until 1999. The widespread failure to convey notes (the borrower IOU) to securitization trusts appears not to have started until sometime between 2002 and 2004.

Perhaps a similar, but not as extreme, dynamic played out in Philippine banking where bank officers bypassed traditional internal controls all in the name of expediency and market share, enabling criminals to take full advantage of the system.

Another Possible Casualty of Rapid Growth: Poor Due Diligence and Loose Credit Standards

Another casualty of rapid growth could be an increasing lack of due diligence as well as a severe loosening of credit standards, leading to major losses sometime in the future. So far, that does not seem to have happened - yet. NPLs are at historical lows and credit standards, based on senior loan officer surveys, have not changed much.


Source: www.bsp.gov.ph


Source: www.bsp.gov.ph

The legendary investor Warren Buffet likes to say "Only when the tide goes out do you discover who's been swimming naked." The tide hasn't gone out yet for the Philippine banking industry but the likes of RCBC, Union Bank, and Metrobank have already been caught swimming naked.



Related Posts:

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

The Great Bangladesh Central Bank Heist of 2016: So Whose Heads Have Rolled in RCBC?

After the BPI Computer Glitch, the New BSP Cyber-Security Guidelines May Be Ignoring the Ticking Time Bomb in the Heart of Philippine Banks


Tuesday, July 18, 2017

Overstated Capital of Philippine Banks as of March 31, 2017

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, seven banks have Deferred Charges as of March 31, 2017:


  1. Bataan Development Bank (Deferred Charges of 7.95% of SE)
  2. City Savings Bank (Deferred Charges of 6.46% of SE)
  3. China Bank Savings Inc (Deferred Charges of 4.55% of SE)
  4. United Coconut Planters Bank (Deferred Charges of 6.51% of SE)
  5. Bank of Commerce (Deferred Charges of 0.81% of SE)
  6. Card SME Bank, Inc. (Deferred Charges of 0.28% of SE)
  7. Wealth Development Bank Corporation (Deferred Charges of 0.06% of SE)


It must be noted that three of these banks were ranked as  distressed (highlighted in yellow) as of December 31, 2016:


  1. United Coconut Planters Bank (Distressed Ratio of 359.43%)
  2. China Bank Savings (Distressed Ratio of 120.92%)
  3. Bataan Development Bank (Distressed Ratio of 115.42%)


For more information on distressed banks, please see the previous blog post: "The Top Distressed Philippine Banks as of December 31, 2016.



Retained Earnings

Only five banks have sufficient Retained Earnings (RE) to absorb their unbooked losses as of March 31, 2017:


  1. Bataan Development Bank (37.18% of RE)
  2. City Savings Bank (7.84% of RE)
  3. United Coconut Planters Bank (6.94% of RE)
  4. Wealth Development Bank Corporation (6.29% of RE)
  5. CARD SME Bank (1.56% 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 3.97 billion vs. Deferred Charges of Php 103.61 million).
  2. China Bank Savings (Retained Earnings of - Php 1.36 billion vs. Deferred Charges of Php 416.85 million)

Philippine Banking System
Deferred Charges Not Yet Written Down
Impact on Stockholder's Equity
In Php
March 31, 2017
















Bank Type of Bank Deferred Charges Unbooked Losses Total Deferred Charges Stockholder's Equity Adjusted SE Impact on SE
BATAAN DEVELOPMENT BANK Thrift 6,169,529.00 0.00 6,169,529.00 77,568,284.11 71,398,755.11 7.95%
CITY SAVINGS BANK Thrift 727,696,423.88 0.00 727,696,423.88 11,258,212,430.01 10,530,516,006.13 6.46%
CHINA BANK SAVINGS INC Thrift 416,852,894.01 0.00 416,852,894.01 9,163,202,511.71 8,746,349,617.70 4.55%
UNITED COCONUT PLANTERS BANK U/KB 301,996,199.58 0.00 301,996,199.58 17,451,124,244.88 17,149,128,045.30 1.73%
BANK OF COMMERCE U/KB 103,610,227.34 0.00 103,610,227.34 15,153,876,740.35 15,050,266,513.01 0.68%
CARD SME BANK INC A THRIFT BANK Thrift 1,862,174.96 0.00 1,862,174.96 730,971,718.18 729,109,543.22 0.25%
WEALTH DEVELOPMENT BANK CORPORATION Thrift 810,202.50 0.00 810,202.50 1,428,158,118.24 1,427,347,915.74 0.06%
Grand Total
1,558,997,651.27 0.00 1,558,997,651.27 55,263,114,047.48 53,704,116,396.21 2.82%
























Philippine Banking System


Deferred Charges Not Yet Written Down


Impact on Retained Earnings


In Php


March 31, 2017


















Bank Total Deferred Charges RE Adjusted RE Impact on RE


BATAAN DEVELOPMENT BANK 6,169,529.00 16,594,818.75 10,425,289.75 37.18%


CITY SAVINGS BANK 727,696,423.88 9,277,098,942.00 8,549,402,518.12 7.84%


UNITED COCONUT PLANTERS BANK 301,996,199.58 4,354,224,523.92 4,052,228,324.34 6.94%


WEALTH DEVELOPMENT BANK CORPORATION 810,202.50 12,878,740.83 12,068,538.33 6.29%


CARD SME BANK INC A THRIFT BANK 1,862,174.96 119,380,894.60 117,518,719.64 1.56%


BANK OF COMMERCE 103,610,227.34 -3,863,444,370.18 -3,967,054,597.52 -2.68%


CHINA BANK SAVINGS INC 416,852,894.01 -1,363,213,531.71 -1,780,066,425.72 -30.58%


Grand Total 1,558,997,651.27 8,553,520,018.21 6,994,522,366.94 18.23%


Tuesday, July 11, 2017

The Financial Strength of Philippine Banks according to BSP: From Weakest to Strongest - As of March 31, 2017

A bank's Capital Adequacy Ratio is a measure of a bank's capital and financial strength. BSP requires Philippine banks to measure their capital adequacy in at least three defined ratios:


  1. Total Capital Adequacy Ratio
  2. Tier One Capital Adequacy Ratio
  3. Common Tier One Adequacy Ratio.

For a more detailed understanding of these ratios, you can consult BSP's own implementation guidelines, Investopedia.com, or numerous past posts about this subject.

The basic idea behind these ratios is that the higher the ratio, the more solid the bank is in financial strength, the greater it's ability to absorb losses.  BSP's own minimum for most of these ratios is 6.0 but it generally recommends a minimum of 10.0, especially for large and more systemically important banks (those that are Too Big To Fail or TBTF for short).


Every quarter, several Philippine Banks do not meet these guidelines. As of March 31, 2017, the banks that failed to meet BSP's recommended minimum capital requirements are as follows:

TOTAL CAR

  1. Microfinance Maximum SB Inc (Total CAR of -21.30)
  2. Bataan Savings and Loan Bank (Total CAR of 0.00)
  3. Philippine Postal Savings Bank (Total CAR of 5.48)
  4. Luzon Developement Bank (Total CAR of 6.74)
  5. United Coconut Planters Bank (Total CAR of 8.25)
  6. The Palawan Bank Inc (Total CAR of 9.41)

TIER ONE CAR

Eight banks reported Tier One CAR of 0.00 as of March 31, 2017.  Of those that did report Tier One CAR greater than 0.00, six have less than the BSP-recommended Tier One CARs of 10.00. These banks are:


  1. Card SME Bank (Tier One CAR of 3.66)
  2. Philippine Postal Savings Bank Inc (Tier One CAR of 5.13)
  3. Luzon Development Bank (Tier One CAR of 5.90)
  4. United Coconut Planters Bank (Tier One CAR of 8.25)
  5. Sterling Bank of Asia Inc (Tier One CAR of 8.37)
  6. The Palawan Bank (Tier One CAR of 9.27)

COMMON EQUITY TIER ONE CAR


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.  Forty-nine banks reported their CET1 Ratio as 0.00 for December 31, 2016.

However, of those banks that did report a CET1 Ratio other than 0.00, zero banks reported CET1 Ratios below BSP's recommended ratio.

The Total CAR, Tier 1 CAR, and Common Equity Tier 1 CAR of Philippine Banks as of December 31, 2016 is as follows:(Banks that do not meet BSP's minimum capital requirements are highlighted in yellow):


Philippine Banking System
TOTAL CAR
March 31, 2017









Bank Type of Bank Total CAR
MICROFINANCE MAXIMUM SB INC Thrift Bank -21.30
BATAAN SAVINGS AND LOAN BANK Thrift Bank 0.00
PHIL POSTAL SAVINGS BANK INC Thrift Bank 5.48
LUZON DEVELOPMENT BANK Thrift Bank 6.74
UNITED COCONUT PLANTERS BANK U/KB 8.25
THE PALAWAN BANK (PALAWAN DB) INC Thrift Bank 9.41
ENTERPRISE BANK INC (A THRIFT BANK) Thrift Bank 11.29
LAND BANK OF THE  PHILIPPINES U/KB 11.54
PHIL NATIONAL BANK U/KB 12.03
STERLING BANK OF ASIA INC (A SAVINGS BANK) Thrift Bank 12.09
BANK OF THE PHIL ISLANDS U/KB 12.17
CHINA BANK SAVINGS INC Thrift Bank 12.18
THE BNK OF TOKYO-MITSUBISHI UFJ LTD U/KB 12.46
EQUICOM SAVINGS BANK INC Thrift Bank 12.47
PHILIPPINE VETERANS BANK U/KB 13.04
EAST WEST BANKING CORP U/KB 13.09
CHINA BANKING CORP U/KB 13.12
BANK OF CHINA LIMITED U/KB 13.18
RCBC SAVINGS BANK INC Thrift Bank 13.25
PHIL SAVINGS BANK Thrift Bank 14.00
MAYBANK PHILIPPINES INC U/KB 14.06
METROPOLITAN BANK & TRUST CO U/KB 14.23
VILLAGE BANK INC (A THRIFT BANK) Thrift Bank 14.29
PHIL BANK OF COMMUNICATIONS U/KB 14.62
BDO UNIBANK INC U/KB 14.73
CITY SAVINGS BANK INC Thrift Bank 14.85
MIZUHO BANK LTD - MANILA BRANCH U/KB 15.02
UNION BANK OF THE PHILS U/KB 15.06
RIZAL COMM'L BANKING CORP U/KB 15.59
DEVELOPMENT BANK OF THE PHIL U/KB 15.81
BPI FAMILY SAVINGS BANK INC Thrift Bank 15.89
BANGKO KABAYAN INC Thrift Bank 16.34
UCPB SAVINGS BANK Thrift Bank 16.35
MALAYAN BANK SAVINGS AND MORT BANK INC Thrift Bank 16.46
PRODUCERS SAVINGS BANK CORPORATION Thrift Bank 16.87
BDO PRIVATE BANK, INC. U/KB 16.94
PHILIPPINE BUSINESS BANK INC A SAVINGS BANK Thrift Bank 17.00
STANDARD CHARTERED BANK U/KB 17.37
PHILIPPINE RESOURCES SAVINGS BANKING CORPORATION (PR SAVINGS Thrift Bank 17.39
BATAAN DEVELOPMENT BANK Thrift Bank 17.47
ASIA UNITED BANK CORPORATION U/KB 17.58
HONGKONG & SHANGHAI BANKING CORP U/KB 18.39
BANK OF COMMERCE U/KB 18.91
SECURITY BANK CORP U/KB 19.29
CARD SME BANK INC A THRIFT BANK Thrift Bank 19.38
MEGA INT'L COMM'L BANK CO LTD U/KB 19.55
CITIBANK, N.A. U/KB 19.58
FARMERS SAVINGS & LOAN BANK INC Thrift Bank 19.64
1ST VALLEY BANK INC A DEVELOPMENT BANK Thrift Bank 19.68
ANZ BANKING GROUP LTD U/KB 20.00
KEB HANA BANK - MANILA BRANCH U/KB 20.20
PENBANK INC (A PDB) (FORMERLY: PENINSULA RB INC) Thrift Bank 20.55
CITYSTATE SAVINGS BANK INC Thrift Bank 20.65
BANK OF MAKATI (A SAVINGS BANK) INC Thrift Bank 20.66
CTBC BANK (PHILIPPINES) CORP U/KB 21.64
HIYAS BANKING CORPORATION Thrift Bank 21.76
INTER-ASIA DEVELOPMENT BANK Thrift Bank 22.34
DEUTSCHE BANK AG U/KB 22.49
ROBINSONS BANK CORPORATION U/KB 23.36
MARITIME SAVINGS BANK CORPORATION Thrift Bank 23.54
JP MORGAN CHASE BANK NATIONAL ASSN. U/KB 24.42
DUMAGUETE CITY DEV BANK INC Thrift Bank 25.16
METRO CEBU PUBLIC SAVINGS BANK Thrift Bank 25.20
LIFE SAVINGS BANK INC Thrift Bank 25.28
BUSINESS AND CONSUMERS BANK (A DB) Thrift Bank 25.82
WEALTH DEVELOPMENT BANK CORPORATION Thrift Bank 26.16
FIRST CONSOLIDATED BANK INC (A PDB) Thrift Bank 26.61
SUN SAVINGS BANK INC Thrift Bank 28.12
LEGAZPI SAVINGS BANK INC Thrift Bank 29.72
BPI DIRECT BANKO INC Thrift Bank 30.44
UNIVERSITY SAVINGS BANK INC Thrift Bank 30.50
PAMPANGA DEVELOPMENT BANK Thrift Bank 32.00
PNB SAVINGS BANK Thrift Bank 33.42
BANGKOK BANK PUBLIC CO LTD U/KB 35.99
LEMERY SAVINGS & LOAN BANK, INC. Thrift Bank 36.27
QUEEN CITY DEVELOPMENT BANK INC OR QUEENBANK A THRIFT BANK Thrift Bank 36.92
BANK OF AMERICA N.A. U/KB 38.25
CORDILLERA SAVINGS BANK INC Thrift Bank 38.81
PHIL TRUST COMPANY U/KB 39.27
MALASIQUI PROGRESSIVE SLB, INC Thrift Bank 41.33
NORTHPOINT DEV'T BANK INC Thrift Bank 43.39
OPTIMUM DEVELOPMENT BANK INC Thrift Bank 48.72
PHIL STAR DEVELOPMENT BANK INC Thrift Bank 52.06
ING BANK N.V. U/KB 53.36
MERCHANTS SAVINGS & LOAN ASSN INC Thrift Bank 54.80
QUEZON COCONUT BANK INC (A THRIFT BANK) Thrift Bank 57.82
YUANTA SAVINGS BANK PHILIPPINES INC Thrift Bank 63.12
BANK ONE SAVINGS AND TRUST CORP. Thrift Bank 65.31
CATHAY UNITED BANK CO LTD - MANILA BRANCH U/KB 68.68
CENTURY SAVINGS BANK CORPORATION Thrift Bank 79.61
FIRST COMMERCIAL BANK U/KB 96.27
AL-AMANAH ISLAMIC INVESTMENT BANK OF THE PHILS U/KB 105.92
SHINHAN BANK - MANILA BRANCH U/KB 110.84
INDUSTRIAL BANK OF KOREA MANILA BRANCH U/KB 126.78
SUMITOMO MITSUI BANKING CORPORATION - MANILA BRANCH U/KB 135.84
ISLA BANK(A THRIFT BANK) INC Thrift Bank 155.71
UNITED OVERSEAS BANK LIMITED MANILA BRANCH U/KB 211.98
DUNGGANON BANK (A MICROFINANCE THRIFT BANK) INC Thrift Bank NA
HSBC SAVINGS BANK PHILIPPINES Thrift Bank NA
OPPORTUNITY KAUSWAGAN BANK INC (A MICROFINANCE THRIFT BANK) Thrift Bank NA
PACIFIC ACE SAVINGS BANK INC Thrift Bank NA
SAMPAGUITA SAVINGS BANK INC Thrift Bank NA
TONGYANG SAVINGS BANK INC Thrift Bank NA
TOWER DEVELOPMENT BANK Thrift Bank NA
WORLD PARTNERS BANK (A THRIFT BANK) Thrift Bank NA




Philippine Banking System
Tier One CAR
March 31, 2017









Bank Type of Bank Tier One CAR
MICROFINANCE MAXIMUM SB INC Thrift Bank -24.40
1ST VALLEY BANK INC A DEVELOPMENT BANK Thrift Bank 0.00
BATAAN SAVINGS AND LOAN BANK Thrift Bank 0.00
BUSINESS AND CONSUMERS BANK (A DB) Thrift Bank 0.00
ENTERPRISE BANK INC (A THRIFT BANK) Thrift Bank 0.00
EQUICOM SAVINGS BANK INC Thrift Bank 0.00
INTER-ASIA DEVELOPMENT BANK Thrift Bank 0.00
MARITIME SAVINGS BANK CORPORATION Thrift Bank 0.00
OPTIMUM DEVELOPMENT BANK INC Thrift Bank 0.00
CARD SME BANK INC A THRIFT BANK Thrift Bank 3.66
PHIL POSTAL SAVINGS BANK INC Thrift Bank 5.13
LUZON DEVELOPMENT BANK Thrift Bank 5.90
UNITED COCONUT PLANTERS BANK U/KB 8.25
STERLING BANK OF ASIA INC (A SAVINGS BANK) Thrift Bank 8.37
THE PALAWAN BANK (PALAWAN DB) INC Thrift Bank 9.27
EAST WEST BANKING CORP U/KB 10.14
LAND BANK OF THE  PHILIPPINES U/KB 10.71
PHIL SAVINGS BANK Thrift Bank 11.07
CHINA BANK SAVINGS INC Thrift Bank 11.17
PHIL NATIONAL BANK U/KB 11.21
METROPOLITAN BANK & TRUST CO U/KB 11.23
BANK OF THE PHIL ISLANDS U/KB 11.27
PHIL BANK OF COMMUNICATIONS U/KB 11.48
DEVELOPMENT BANK OF THE PHIL U/KB 11.63
THE BNK OF TOKYO-MITSUBISHI UFJ LTD U/KB 11.72
RIZAL COMM'L BANKING CORP U/KB 11.84
UNION BANK OF THE PHILS U/KB 11.95
CHINA BANKING CORP U/KB 12.30
BANK OF CHINA LIMITED U/KB 12.44
PHILIPPINE RESOURCES SAVINGS BANKING CORPORATION (PR SAVINGS Thrift Bank 12.48
RCBC SAVINGS BANK INC Thrift Bank 12.53
PHILIPPINE VETERANS BANK U/KB 12.58
MAYBANK PHILIPPINES INC U/KB 13.08
ASIA UNITED BANK CORPORATION U/KB 13.23
BDO UNIBANK INC U/KB 13.28
VILLAGE BANK INC (A THRIFT BANK) Thrift Bank 13.90
MIZUHO BANK LTD - MANILA BRANCH U/KB 14.07
CITY SAVINGS BANK INC Thrift Bank 14.09
BPI FAMILY SAVINGS BANK INC Thrift Bank 15.03
UNIVERSITY SAVINGS BANK INC Thrift Bank 15.25
UCPB SAVINGS BANK Thrift Bank 15.59
BANGKO KABAYAN INC Thrift Bank 15.85
MALAYAN BANK SAVINGS AND MORT BANK INC Thrift Bank 15.95
PHILIPPINE BUSINESS BANK INC A SAVINGS BANK Thrift Bank 16.12
PRODUCERS SAVINGS BANK CORPORATION Thrift Bank 16.33
BDO PRIVATE BANK, INC. U/KB 16.72
SECURITY BANK CORP U/KB 16.86
STANDARD CHARTERED BANK U/KB 16.97
HONGKONG & SHANGHAI BANKING CORP U/KB 17.69
BANK OF COMMERCE U/KB 18.24
MEGA INT'L COMM'L BANK CO LTD U/KB 18.60
FARMERS SAVINGS & LOAN BANK INC Thrift Bank 18.66
CITIBANK, N.A. U/KB 18.85
BATAAN DEVELOPMENT BANK Thrift Bank 19.27
ANZ BANKING GROUP LTD U/KB 19.38
PENBANK INC (A PDB) (FORMERLY: PENINSULA RB INC) Thrift Bank 19.80
KEB HANA BANK - MANILA BRANCH U/KB 19.86
CITYSTATE SAVINGS BANK INC Thrift Bank 20.08
BANK OF MAKATI (A SAVINGS BANK) INC Thrift Bank 20.15
CTBC BANK (PHILIPPINES) CORP U/KB 20.78
HIYAS BANKING CORPORATION Thrift Bank 21.38
DEUTSCHE BANK AG U/KB 21.86
ROBINSONS BANK CORPORATION U/KB 22.66
METRO CEBU PUBLIC SAVINGS BANK Thrift Bank 24.15
JP MORGAN CHASE BANK NATIONAL ASSN. U/KB 24.25
DUMAGUETE CITY DEV BANK INC Thrift Bank 24.71
LIFE SAVINGS BANK INC Thrift Bank 25.13
WEALTH DEVELOPMENT BANK CORPORATION Thrift Bank 25.34
FIRST CONSOLIDATED BANK INC (A PDB) Thrift Bank 25.75
BPI DIRECT BANKO INC Thrift Bank 26.69
SUN SAVINGS BANK INC Thrift Bank 27.28
LEGAZPI SAVINGS BANK INC Thrift Bank 28.94
BANGKOK BANK PUBLIC CO LTD U/KB 35.01
PNB SAVINGS BANK Thrift Bank 35.52
LEMERY SAVINGS & LOAN BANK, INC. Thrift Bank 35.83
QUEEN CITY DEVELOPMENT BANK INC OR QUEENBANK A THRIFT BANK Thrift Bank 36.54
BANK OF AMERICA N.A. U/KB 37.78
CORDILLERA SAVINGS BANK INC Thrift Bank 38.28
PHIL TRUST COMPANY U/KB 38.94
MALASIQUI PROGRESSIVE SLB, INC Thrift Bank 41.33
NORTHPOINT DEV'T BANK INC Thrift Bank 42.99
ING BANK N.V. U/KB 52.87
MERCHANTS SAVINGS & LOAN ASSN INC Thrift Bank 54.14
PHIL STAR DEVELOPMENT BANK INC Thrift Bank 55.25
QUEZON COCONUT BANK INC (A THRIFT BANK) Thrift Bank 59.01
YUANTA SAVINGS BANK PHILIPPINES INC Thrift Bank 63.12
BANK ONE SAVINGS AND TRUST CORP. Thrift Bank 64.63
CATHAY UNITED BANK CO LTD - MANILA BRANCH U/KB 68.32
CENTURY SAVINGS BANK CORPORATION Thrift Bank 78.86
FIRST COMMERCIAL BANK U/KB 96.27
AL-AMANAH ISLAMIC INVESTMENT BANK OF THE PHILS U/KB 105.44
SHINHAN BANK - MANILA BRANCH U/KB 110.32
INDUSTRIAL BANK OF KOREA MANILA BRANCH U/KB 126.78
PAMPANGA DEVELOPMENT BANK Thrift Bank 132.96
SUMITOMO MITSUI BANKING CORPORATION - MANILA BRANCH U/KB 134.89
ISLA BANK(A THRIFT BANK) INC Thrift Bank 155.44
UNITED OVERSEAS BANK LIMITED MANILA BRANCH U/KB 211.98
DUNGGANON BANK (A MICROFINANCE THRIFT BANK) INC Thrift Bank NA
HSBC SAVINGS BANK PHILIPPINES Thrift Bank NA
OPPORTUNITY KAUSWAGAN BANK INC (A MICROFINANCE THRIFT BANK) Thrift Bank NA
PACIFIC ACE SAVINGS BANK INC Thrift Bank NA
SAMPAGUITA SAVINGS BANK INC Thrift Bank NA
TONGYANG SAVINGS BANK INC Thrift Bank NA
TOWER DEVELOPMENT BANK Thrift Bank NA
WORLD PARTNERS BANK (A THRIFT BANK) Thrift Bank NA


Philippine Banking System
Common Tier 1 Ratio
March 31, 2017









Bank Type of Bank Common Tier 1 Ratio
1ST VALLEY BANK INC A DEVELOPMENT BANK Thrift Bank 0.00
BANGKO KABAYAN INC Thrift Bank 0.00
BANK OF AMERICA N.A. U/KB 0.00
BANK OF CHINA LIMITED U/KB 0.00
BANK OF MAKATI (A SAVINGS BANK) INC Thrift Bank 0.00
BANK ONE SAVINGS AND TRUST CORP. Thrift Bank 0.00
BATAAN DEVELOPMENT BANK Thrift Bank 0.00
BATAAN SAVINGS AND LOAN BANK Thrift Bank 0.00
BUSINESS AND CONSUMERS BANK (A DB) Thrift Bank 0.00
CARD SME BANK INC A THRIFT BANK Thrift Bank 0.00
CENTURY SAVINGS BANK CORPORATION Thrift Bank 0.00
CITYSTATE SAVINGS BANK INC Thrift Bank 0.00
CORDILLERA SAVINGS BANK INC Thrift Bank 0.00
DUMAGUETE CITY DEV BANK INC Thrift Bank 0.00
ENTERPRISE BANK INC (A THRIFT BANK) Thrift Bank 0.00
EQUICOM SAVINGS BANK INC Thrift Bank 0.00
FARMERS SAVINGS & LOAN BANK INC Thrift Bank 0.00
FIRST CONSOLIDATED BANK INC (A PDB) Thrift Bank 0.00
HIYAS BANKING CORPORATION Thrift Bank 0.00
INTER-ASIA DEVELOPMENT BANK Thrift Bank 0.00
ISLA BANK(A THRIFT BANK) INC Thrift Bank 0.00
LEMERY SAVINGS & LOAN BANK, INC. Thrift Bank 0.00
LIFE SAVINGS BANK INC Thrift Bank 0.00
LUZON DEVELOPMENT BANK Thrift Bank 0.00
MALASIQUI PROGRESSIVE SLB, INC Thrift Bank 0.00
MALAYAN BANK SAVINGS AND MORT BANK INC Thrift Bank 0.00
MARITIME SAVINGS BANK CORPORATION Thrift Bank 0.00
METRO CEBU PUBLIC SAVINGS BANK Thrift Bank 0.00
MICROFINANCE MAXIMUM SB INC Thrift Bank 0.00
NORTHPOINT DEV'T BANK INC Thrift Bank 0.00
OPTIMUM DEVELOPMENT BANK INC Thrift Bank 0.00
PAMPANGA DEVELOPMENT BANK Thrift Bank 0.00
PENBANK INC (A PDB) (FORMERLY: PENINSULA RB INC) Thrift Bank 0.00
PHIL POSTAL SAVINGS BANK INC Thrift Bank 0.00
PHIL STAR DEVELOPMENT BANK INC Thrift Bank 0.00
PHILIPPINE BUSINESS BANK INC A SAVINGS BANK Thrift Bank 0.00
PHILIPPINE RESOURCES SAVINGS BANKING CORPORATION (PR SAVINGS Thrift Bank 0.00
PRODUCERS SAVINGS BANK CORPORATION Thrift Bank 0.00
QUEEN CITY DEVELOPMENT BANK INC OR QUEENBANK A THRIFT BANK Thrift Bank 0.00
QUEZON COCONUT BANK INC (A THRIFT BANK) Thrift Bank 0.00
STERLING BANK OF ASIA INC (A SAVINGS BANK) Thrift Bank 0.00
SUN SAVINGS BANK INC Thrift Bank 0.00
THE PALAWAN BANK (PALAWAN DB) INC Thrift Bank 0.00
UNITED COCONUT PLANTERS BANK U/KB 0.00
UNITED OVERSEAS BANK LIMITED MANILA BRANCH U/KB 0.00
UNIVERSITY SAVINGS BANK INC Thrift Bank 0.00
VILLAGE BANK INC (A THRIFT BANK) Thrift Bank 0.00
WEALTH DEVELOPMENT BANK CORPORATION Thrift Bank 0.00
YUANTA SAVINGS BANK PHILIPPINES INC Thrift Bank 0.00
EAST WEST BANKING CORP U/KB 10.14
LAND BANK OF THE  PHILIPPINES U/KB 10.71
PHILIPPINE VETERANS BANK U/KB 11.05
PHIL SAVINGS BANK Thrift Bank 11.07
CHINA BANK SAVINGS INC Thrift Bank 11.16
PHIL NATIONAL BANK U/KB 11.21
METROPOLITAN BANK & TRUST CO U/KB 11.23
BANK OF THE PHIL ISLANDS U/KB 11.27
PHIL BANK OF COMMUNICATIONS U/KB 11.48
DEVELOPMENT BANK OF THE PHIL U/KB 11.63
THE BNK OF TOKYO-MITSUBISHI UFJ LTD U/KB 11.72
RIZAL COMM'L BANKING CORP U/KB 11.84
UNION BANK OF THE PHILS U/KB 11.95
CHINA BANKING CORP U/KB 12.30
RCBC SAVINGS BANK INC Thrift Bank 12.53
BDO PRIVATE BANK, INC. U/KB 12.89
BDO UNIBANK INC U/KB 12.97
MAYBANK PHILIPPINES INC U/KB 13.08
ASIA UNITED BANK CORPORATION U/KB 13.23
MIZUHO BANK LTD - MANILA BRANCH U/KB 14.07
CITY SAVINGS BANK INC Thrift Bank 14.09
BPI FAMILY SAVINGS BANK INC Thrift Bank 15.03
UCPB SAVINGS BANK Thrift Bank 15.59
SECURITY BANK CORP U/KB 16.86
STANDARD CHARTERED BANK U/KB 16.97
HONGKONG & SHANGHAI BANKING CORP U/KB 17.69
BANK OF COMMERCE U/KB 18.24
MEGA INT'L COMM'L BANK CO LTD U/KB 18.60
CITIBANK, N.A. U/KB 18.85
ANZ BANKING GROUP LTD U/KB 19.38
KEB HANA BANK - MANILA BRANCH U/KB 19.86
CTBC BANK (PHILIPPINES) CORP U/KB 20.78
DEUTSCHE BANK AG U/KB 21.86
ROBINSONS BANK CORPORATION U/KB 22.66
JP MORGAN CHASE BANK NATIONAL ASSN. U/KB 24.25
BPI DIRECT BANKO INC Thrift Bank 26.69
LEGAZPI SAVINGS BANK INC Thrift Bank 28.94
PNB SAVINGS BANK Thrift Bank 32.51
BANGKOK BANK PUBLIC CO LTD U/KB 35.01
PHIL TRUST COMPANY U/KB 38.94
ING BANK N.V. U/KB 52.87
MERCHANTS SAVINGS & LOAN ASSN INC Thrift Bank 54.14
CATHAY UNITED BANK CO LTD - MANILA BRANCH U/KB 68.32
FIRST COMMERCIAL BANK U/KB 96.27
AL-AMANAH ISLAMIC INVESTMENT BANK OF THE PHILS U/KB 105.44
SHINHAN BANK - MANILA BRANCH U/KB 110.32
INDUSTRIAL BANK OF KOREA MANILA BRANCH U/KB 126.78
SUMITOMO MITSUI BANKING CORPORATION - MANILA BRANCH U/KB 134.89
DUNGGANON BANK (A MICROFINANCE THRIFT BANK) INC Thrift Bank NA
HSBC SAVINGS BANK PHILIPPINES Thrift Bank NA
OPPORTUNITY KAUSWAGAN BANK INC (A MICROFINANCE THRIFT BANK) Thrift Bank NA
PACIFIC ACE SAVINGS BANK INC Thrift Bank NA
SAMPAGUITA SAVINGS BANK INC Thrift Bank NA
TONGYANG SAVINGS BANK INC Thrift Bank NA
TOWER DEVELOPMENT BANK Thrift Bank NA
WORLD PARTNERS BANK (A THRIFT BANK) Thrift Bank NA