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Monday, March 30, 2020

A Simple Stress Test of Philippine Banks as September 30, 2019

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 220.26` billion or 10.01% of the PhP 2,201.11 billion in Stockholders Equity (SE) as of September 30, 2019.  So, writing off 50% of the Philippine Banks NPLs would reduce their aggregate stockholder's equity by a little more than 5%.

 




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 Circular #0247 dated May 19, 2000, BSP defines Classified Loans as loans which possess the following characteristics:
  1. Loans especially mentioned because they have potential weaknesses that deserve Management's close attention;
  2. 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;
  3. 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;
  4. 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.
The circular mandates that an allowance for probable losses should be set up in accordance with the following schedule:
  1. Loans Especially Mentioned: 5%
  2. Substandard - Secured: 6% - 25%
  3. Substandard - Unsecured: 25%
  4. Doubtful: 50%
  5. Loss: 100%
 
As of September 30, 2019, "Classified Loans and Other Risky Assets" of the Philippine Banks amounted to PhP 467.51 billion or more than two times the size of the Philippine Banking System's NPLs of PhP 220.26 billion for the same period.  Consequently, any write-offs of Classified Loans will have more than twice the impact of an NPL write-off.

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 467.51 billion or 20.99% of the Php 2.23 trillion in Total Capital Cushion of Philippine Banks as of September 30, 2019.
 
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 20.99% 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 2.10% and a 50% write-off of classified loans will reduce the banking system's Total Capital Cushion by 10.50.


Individual Banks


A 10% write-off of Classified Loans would severely impact (by 25% or more) the Total Capital Cushion of twelve banks (severely affected banks highlighted in yellow).


Philippine Banking System
Impact of 10% Classified Loan Loss Severities on Total Capital Cushion
September 30, 2019











Classified Loans 10% Classified Loan Loss Severity Total Capital Cushion Impact of 10% Loss on Total Capital Cushion
Bank (In Php) (In Php) (In Php) (In %)
INTER-ASIA DEVELOPMENT BANK 591,080,598.32 59,108,059.83 89,057,758.62 66.37%
SAVIOUR RURAL BANK INC 510,907,252.21 51,090,725.22 104,266,957.08 49.00%
RB OF JAEN INC 274,485,417.04 27,448,541.70 57,795,953.69 47.49%
RB OF CENTRAL PANGASINAN (BAYAMBANG) INC 799,972,112.83 79,997,211.28 188,221,990.32 42.50%
COOP BANK OF CAGAYAN 374,874,961.48 37,487,496.15 105,371,177.73 35.58%
RB OF BROOKE'S POINT (PALAWAN) INC 338,942,658.50 33,894,265.85 98,745,885.41 34.32%
RB OF DULAG (LEYTE) INC 337,204,105.53 33,720,410.55 107,563,978.48 31.35%
BENGUET CENTER BANK INC A RB 205,085,874.81 20,508,587.48 70,498,979.94 29.09%
COMMTY RB OF DAPITAN CITY INC 440,638,013.64 44,063,801.36 161,602,826.39 27.27%
MAKILING DEVELOPMENT BANK CORPORATION 894,188,043.48 89,418,804.35 348,548,891.10 25.65%
RB OF CARDONA (RIZAL) INC 313,465,577.98 31,346,557.80 125,094,802.07 25.06%
VILLAGE BANK INC (A RURAL BANK) 268,499,131.80 26,849,913.18 107,313,565.81 25.02%



A 20% write-off of Classified Loans will wipe out the Total Capital Cushion of one bank (highlighted in red) and severely impact the Total Capital Cushion of twenty-two banks (highlighted in yellow):

 
Philippine Banking System
Impact of 20% Classified Loan Loss Severities on Total Capital Cushion
September 30, 2019











Classified Loans 10% Classified Loan Loss Severity Total Capital Cushion Impact of 20% Loss on Total Capital Cushion
Bank (In Php) (In Php) (In Php) (In %)
INTER-ASIA DEVELOPMENT BANK 591,080,598.32 118,216,119.66 89,057,758.62 132.74%
SAVIOUR RURAL BANK INC 510,907,252.21 102,181,450.44 104,266,957.08 98.00%
RB OF JAEN INC 274,485,417.04 54,897,083.41 57,795,953.69 94.98%
RB OF CENTRAL PANGASINAN (BAYAMBANG) INC 799,972,112.83 159,994,422.57 188,221,990.32 85.00%
COOP BANK OF CAGAYAN 374,874,961.48 74,974,992.30 105,371,177.73 71.15%
RB OF BROOKE'S POINT (PALAWAN) INC 338,942,658.50 67,788,531.70 98,745,885.41 68.65%
RB OF DULAG (LEYTE) INC 337,204,105.53 67,440,821.11 107,563,978.48 62.70%
BENGUET CENTER BANK INC A RB 205,085,874.81 41,017,174.96 70,498,979.94 58.18%
COMMTY RB OF DAPITAN CITY INC 440,638,013.64 88,127,602.73 161,602,826.39 54.53%
MAKILING DEVELOPMENT BANK CORPORATION 894,188,043.48 178,837,608.70 348,548,891.10 51.31%
RB OF CARDONA (RIZAL) INC 313,465,577.98 62,693,115.60 125,094,802.07 50.12%
VILLAGE BANK INC (A RURAL BANK) 268,499,131.80 53,699,826.36 107,313,565.81 50.04%
RB OF MIDSAYAP INC 227,694,723.50 45,538,944.70 100,925,612.49 45.12%
MALAYAN BANK SAVINGS AND MORT BANK INC 2,977,622,359.87 595,524,471.97 1,424,236,269.29 41.81%
BANK OF CHINA LIMITED-MANILA BRANCH 20,928,414,348.66 4,185,682,869.73 10,086,765,483.16 41.50%
RB OF PILAR (BATAAN) INC 296,318,164.30 59,263,632.86 153,861,114.95 38.52%
PLANBANK "RB OF CANLUBANG PLANTERS INC" 288,524,878.78 57,704,975.76 154,423,979.91 37.37%
UNITED COCONUT PLANTERS BANK 12,480,467,391.08 2,496,093,478.22 6,776,674,065.74 36.83%
RANG-AY BANK INC (A RURAL BANK) 936,582,999.91 187,316,599.98 533,212,561.60 35.13%
YUANTA SAVINGS BANK PHILIPPINES INC 1,558,586,039.75 311,717,207.95 904,821,958.20 34.45%
RB OF GENERAL TRIAS INC 229,666,878.41 45,933,375.68 141,763,762.14 32.40%
AMA RURAL BANK OF MANDALUYONG INC 1,355,753,000.00 271,150,600.00 891,921,691.66 30.40%
RB OF SAN LUIS (PAMPANGA) INC 170,854,183.35 34,170,836.67 114,537,220.96 29.83%


 A 30% write-off of Classified Loans will totally wipe out the Total Capital Cushion of six banks (highlighted in red) and severely affect (reduce by 25% or more) the Total Capital Cushion of thirty-four other banks(highlighted in yellow):

  
Philippine Banking System
Impact of 30% Classified Loan Loss Severities on Total Capital Cushion
September 30, 2019











Classified Loans 30% Classified Loan Loss Severity Total Capital Cushion Impact of 30% Loss on Total Capital Cushion
Bank (In Php) (In Php) (In Php) (In %)
INTER-ASIA DEVELOPMENT BANK 591,080,598.32 177,324,179.50 89,057,758.62 199.11%
SAVIOUR RURAL BANK INC 510,907,252.21 153,272,175.66 104,266,957.08 147.00%
RB OF JAEN INC 274,485,417.04 82,345,625.11 57,795,953.69 142.48%
RB OF CENTRAL PANGASINAN (BAYAMBANG) INC 799,972,112.83 239,991,633.85 188,221,990.32 127.50%
COOP BANK OF CAGAYAN 374,874,961.48 112,462,488.44 105,371,177.73 106.73%
RB OF BROOKE'S POINT (PALAWAN) INC 338,942,658.50 101,682,797.55 98,745,885.41 102.97%
RB OF DULAG (LEYTE) INC 337,204,105.53 101,161,231.66 107,563,978.48 94.05%
BENGUET CENTER BANK INC A RB 205,085,874.81 61,525,762.44 70,498,979.94 87.27%
COMMTY RB OF DAPITAN CITY INC 440,638,013.64 132,191,404.09 161,602,826.39 81.80%
MAKILING DEVELOPMENT BANK CORPORATION 894,188,043.48 268,256,413.04 348,548,891.10 76.96%
RB OF CARDONA (RIZAL) INC 313,465,577.98 94,039,673.39 125,094,802.07 75.17%
VILLAGE BANK INC (A RURAL BANK) 268,499,131.80 80,549,739.54 107,313,565.81 75.06%
RB OF MIDSAYAP INC 227,694,723.50 68,308,417.05 100,925,612.49 67.68%
MALAYAN BANK SAVINGS AND MORT BANK INC 2,977,622,359.87 893,286,707.96 1,424,236,269.29 62.72%
BANK OF CHINA LIMITED-MANILA BRANCH 20,928,414,348.66 6,278,524,304.60 10,086,765,483.16 62.25%
RB OF PILAR (BATAAN) INC 296,318,164.30 88,895,449.29 153,861,114.95 57.78%
PLANBANK "RB OF CANLUBANG PLANTERS INC" 288,524,878.78 86,557,463.63 154,423,979.91 56.05%
UNITED COCONUT PLANTERS BANK 12,480,467,391.08 3,744,140,217.32 6,776,674,065.74 55.25%
RANG-AY BANK INC (A RURAL BANK) 936,582,999.91 280,974,899.97 533,212,561.60 52.69%
YUANTA SAVINGS BANK PHILIPPINES INC 1,558,586,039.75 467,575,811.93 904,821,958.20 51.68%
RB OF GENERAL TRIAS INC 229,666,878.41 68,900,063.52 141,763,762.14 48.60%
AMA RURAL BANK OF MANDALUYONG INC 1,355,753,000.00 406,725,900.00 891,921,691.66 45.60%
RB OF SAN LUIS (PAMPANGA) INC 170,854,183.35 51,256,255.01 114,537,220.96 44.75%
RB OF MARIA AURORA (AURORA) INC 291,832,679.15 87,549,803.75 238,942,441.99 36.64%
RB OF SAN MATEO(ISABELA) INC 166,662,821.17 49,998,846.35 136,654,395.35 36.59%
RB OF BAMBANG (NUEVA VIZCAYA) INC 165,715,814.62 49,714,744.39 138,079,267.69 36.00%
COMMON WEALTH RURAL BANK INC 148,393,073.81 44,517,922.14 133,847,522.75 33.26%
CORDILLERA SAVINGS BANK INC 141,752,786.30 42,525,835.89 137,457,221.38 30.94%
RB OF BAYOMBONG INC 185,975,373.42 55,792,612.03 181,010,882.20 30.82%
COOPERATIVE BANK OF BOHOL 111,400,936.54 33,420,280.96 112,434,247.74 29.72%
COUNTRY BUILDERS BANK INC (A RURAL BANK) 335,907,264.02 100,772,179.21 354,184,625.30 28.45%
GATEWAY RURAL BANK INC 116,098,800.57 34,829,640.17 122,636,282.32 28.40%
EQUICOM SAVINGS BANK INC 973,379,843.02 292,013,952.91 1,046,369,742.58 27.91%
BOF INC (A RURAL BANK) 585,817,793.30 175,745,337.99 642,802,469.17 27.34%
RB OF SAN NARCISO INC 49,571,542.65 14,871,462.80 55,716,472.11 26.69%
ASIA UNITED BANK CORPORATION 26,632,562,394.36 7,989,768,718.31 30,654,018,442.84 26.06%
BATAAN DEVELOPMENT BANK 102,400,000.00 30,720,000.00 120,119,828.90 25.57%



A 40% write-off of Classified Loans will totally wipe out the Total Capital Cushion of twelve banks (highlighted in red) and severely affect (reduce by 25% or more) the Total Capital Cushion of forty-one more banks (highlighted in yellow):

 
Philippine Banking System
Impact of 40% Classified Loan Loss Severities on Total Capital Cushion
September 30, 2019











Classified Loans 40% Classified Loan Loss Severity Total Capital Cushion Impact of 40% Loss on Total Capital Cushion
Bank (In Php) (In Php) (In Php) (In %)
INTER-ASIA DEVELOPMENT BANK 591,080,598.32 236,432,239.33 89,057,758.62 265.48%
SAVIOUR RURAL BANK INC 510,907,252.21 204,362,900.88 104,266,957.08 196.00%
RB OF JAEN INC 274,485,417.04 109,794,166.82 57,795,953.69 189.97%
RB OF CENTRAL PANGASINAN (BAYAMBANG) INC 799,972,112.83 319,988,845.13 188,221,990.32 170.01%
COOP BANK OF CAGAYAN 374,874,961.48 149,949,984.59 105,371,177.73 142.31%
RB OF BROOKE'S POINT (PALAWAN) INC 338,942,658.50 135,577,063.40 98,745,885.41 137.30%
RB OF DULAG (LEYTE) INC 337,204,105.53 134,881,642.21 107,563,978.48 125.40%
BENGUET CENTER BANK INC A RB 205,085,874.81 82,034,349.92 70,498,979.94 116.36%
COMMTY RB OF DAPITAN CITY INC 440,638,013.64 176,255,205.46 161,602,826.39 109.07%
MAKILING DEVELOPMENT BANK CORPORATION 894,188,043.48 357,675,217.39 348,548,891.10 102.62%
RB OF CARDONA (RIZAL) INC 313,465,577.98 125,386,231.19 125,094,802.07 100.23%
VILLAGE BANK INC (A RURAL BANK) 268,499,131.80 107,399,652.72 107,313,565.81 100.08%
RB OF MIDSAYAP INC 227,694,723.50 91,077,889.40 100,925,612.49 90.24%
MALAYAN BANK SAVINGS AND MORT BANK INC 2,977,622,359.87 1,191,048,943.95 1,424,236,269.29 83.63%
BANK OF CHINA LIMITED-MANILA BRANCH 20,928,414,348.66 8,371,365,739.46 10,086,765,483.16 82.99%
RB OF PILAR (BATAAN) INC 296,318,164.30 118,527,265.72 153,861,114.95 77.04%
PLANBANK "RB OF CANLUBANG PLANTERS INC" 288,524,878.78 115,409,951.51 154,423,979.91 74.74%
UNITED COCONUT PLANTERS BANK 12,480,467,391.08 4,992,186,956.43 6,776,674,065.74 73.67%
RANG-AY BANK INC (A RURAL BANK) 936,582,999.91 374,633,199.96 533,212,561.60 70.26%
YUANTA SAVINGS BANK PHILIPPINES INC 1,558,586,039.75 623,434,415.90 904,821,958.20 68.90%
RB OF GENERAL TRIAS INC 229,666,878.41 91,866,751.36 141,763,762.14 64.80%
AMA RURAL BANK OF MANDALUYONG INC 1,355,753,000.00 542,301,200.00 891,921,691.66 60.80%
RB OF SAN LUIS (PAMPANGA) INC 170,854,183.35 68,341,673.34 114,537,220.96 59.67%
RB OF MARIA AURORA (AURORA) INC 291,832,679.15 116,733,071.66 238,942,441.99 48.85%
RB OF SAN MATEO(ISABELA) INC 166,662,821.17 66,665,128.47 136,654,395.35 48.78%
RB OF BAMBANG (NUEVA VIZCAYA) INC 165,715,814.62 66,286,325.85 138,079,267.69 48.01%
COMMON WEALTH RURAL BANK INC 148,393,073.81 59,357,229.52 133,847,522.75 44.35%
CORDILLERA SAVINGS BANK INC 141,752,786.30 56,701,114.52 137,457,221.38 41.25%
RB OF BAYOMBONG INC 185,975,373.42 74,390,149.37 181,010,882.20 41.10%
COOPERATIVE BANK OF BOHOL 111,400,936.54 44,560,374.62 112,434,247.74 39.63%
COUNTRY BUILDERS BANK INC (A RURAL BANK) 335,907,264.02 134,362,905.61 354,184,625.30 37.94%
GATEWAY RURAL BANK INC 116,098,800.57 46,439,520.23 122,636,282.32 37.87%
EQUICOM SAVINGS BANK INC 973,379,843.02 389,351,937.21 1,046,369,742.58 37.21%
BOF INC (A RURAL BANK) 585,817,793.30 234,327,117.32 642,802,469.17 36.45%
RB OF SAN NARCISO INC 49,571,542.65 19,828,617.06 55,716,472.11 35.59%
ASIA UNITED BANK CORPORATION 26,632,562,394.36 10,653,024,957.74 30,654,018,442.84 34.75%
BATAAN DEVELOPMENT BANK 102,400,000.00 40,960,000.00 120,119,828.90 34.10%
GM BANK OF LUZON INC (A RURAL BANK) 399,218,023.65 159,687,209.46 483,172,924.10 33.05%
UCPB SAVINGS BANK 2,911,217,229.07 1,164,486,891.63 3,581,278,919.06 32.52%
ILOCOS CONSOLIDATED COOPERATIVE BANK 220,545,355.50 88,218,142.20 284,860,294.22 30.97%
LIBERTY BANK (A RURAL BANK) INC 57,360,205.02 22,944,082.01 76,650,630.93 29.93%
BANGKO MABUHAY (A RURAL BANK) INC 245,624,983.54 98,249,993.42 334,650,767.06 29.36%
CHINA BANK SAVINGS INC 8,538,604,139.37 3,415,441,655.75 11,704,604,899.76 29.18%
PEOPLES BANK OF CARAGA INC (A RURAL BANK) 307,308,190.41 122,923,276.16 421,692,152.80 29.15%
RB OF MAGDALENA (LAGUNA) INC 85,455,305.51 34,182,122.20 122,538,456.32 27.90%
PBCOM RURAL BANK INC 639,586,635.86 255,834,654.34 927,005,866.32 27.60%
PHIL BANK OF COMMUNICATIONS 8,746,664,726.77 3,498,665,890.71 12,760,687,633.53 27.42%
PENBANK INC (A PDB) (FORMERLY: PENINSULA RB INC) 399,867,114.75 159,946,845.90 590,330,854.86 27.09%
LEGAZPI SAVINGS BANK INC 543,831,000.00 217,532,400.00 829,242,217.84 26.23%
FIRST IMPERIAL BUSINESS BANK INC (A RURAL BANK) 191,703,392.35 76,681,356.94 292,557,357.63 26.21%
SUGBUANON RB INC 72,802,716.56 29,121,086.62 114,310,395.26 25.48%
NEW RB OF SAN LEONARDO (N.E.) INC 160,984,753.53 64,393,901.41 253,873,504.19 25.36%
HIGHLAND RURAL BANK INC 104,122,881.70 41,649,152.68 164,486,964.13 25.32%










A 50% write-off of Classified Loans will totally wipe out the Total Capital Cushion of fifteen banks (highlighted in red) and severely affect (reduce by 25% or more) the Total Capital Cushion of fifty more banks (highlighted in yellow):

 
Philippine Banking System
Impact of 50% Classified Loan Loss Severities on Total Capital Cushion
September 30, 2019











Classified Loans 50% Classified Loan Loss Severity Total Capital Cushion Impact of 50% Loss on Total Capital Cushion
Bank (In Php) (In Php) (In Php) (In %)
INTER-ASIA DEVELOPMENT BANK 591,080,598.32 295,540,299.16 89,057,758.62 331.85%
SAVIOUR RURAL BANK INC 510,907,252.21 255,453,626.11 104,266,957.08 245.00%
RB OF JAEN INC 274,485,417.04 137,242,708.52 57,795,953.69 237.46%
RB OF CENTRAL PANGASINAN (BAYAMBANG) INC 799,972,112.83 399,986,056.42 188,221,990.32 212.51%
COOP BANK OF CAGAYAN 374,874,961.48 187,437,480.74 105,371,177.73 177.88%
RB OF BROOKE'S POINT (PALAWAN) INC 338,942,658.50 169,471,329.25 98,745,885.41 171.62%
RB OF DULAG (LEYTE) INC 337,204,105.53 168,602,052.77 107,563,978.48 156.75%
BENGUET CENTER BANK INC A RB 205,085,874.81 102,542,937.41 70,498,979.94 145.45%
COMMTY RB OF DAPITAN CITY INC 440,638,013.64 220,319,006.82 161,602,826.39 136.33%
MAKILING DEVELOPMENT BANK CORPORATION 894,188,043.48 447,094,021.74 348,548,891.10 128.27%
RB OF CARDONA (RIZAL) INC 313,465,577.98 156,732,788.99 125,094,802.07 125.29%
VILLAGE BANK INC (A RURAL BANK) 268,499,131.80 134,249,565.90 107,313,565.81 125.10%
RB OF MIDSAYAP INC 227,694,723.50 113,847,361.75 100,925,612.49 112.80%
MALAYAN BANK SAVINGS AND MORT BANK INC 2,977,622,359.87 1,488,811,179.94 1,424,236,269.29 104.53%
BANK OF CHINA LIMITED-MANILA BRANCH 20,928,414,348.66 10,464,207,174.33 10,086,765,483.16 103.74%
RB OF PILAR (BATAAN) INC 296,318,164.30 148,159,082.15 153,861,114.95 96.29%
PLANBANK "RB OF CANLUBANG PLANTERS INC" 288,524,878.78 144,262,439.39 154,423,979.91 93.42%
UNITED COCONUT PLANTERS BANK 12,480,467,391.08 6,240,233,695.54 6,776,674,065.74 92.08%
RANG-AY BANK INC (A RURAL BANK) 936,582,999.91 468,291,499.96 533,212,561.60 87.82%
YUANTA SAVINGS BANK PHILIPPINES INC 1,558,586,039.75 779,293,019.88 904,821,958.20 86.13%
RB OF GENERAL TRIAS INC 229,666,878.41 114,833,439.21 141,763,762.14 81.00%
AMA RURAL BANK OF MANDALUYONG INC 1,355,753,000.00 677,876,500.00 891,921,691.66 76.00%
RB OF SAN LUIS (PAMPANGA) INC 170,854,183.35 85,427,091.68 114,537,220.96 74.58%
RB OF MARIA AURORA (AURORA) INC 291,832,679.15 145,916,339.58 238,942,441.99 61.07%
RB OF SAN MATEO(ISABELA) INC 166,662,821.17 83,331,410.59 136,654,395.35 60.98%
RB OF BAMBANG (NUEVA VIZCAYA) INC 165,715,814.62 82,857,907.31 138,079,267.69 60.01%
COMMON WEALTH RURAL BANK INC 148,393,073.81 74,196,536.91 133,847,522.75 55.43%
CORDILLERA SAVINGS BANK INC 141,752,786.30 70,876,393.15 137,457,221.38 51.56%
RB OF BAYOMBONG INC 185,975,373.42 92,987,686.71 181,010,882.20 51.37%
COOPERATIVE BANK OF BOHOL 111,400,936.54 55,700,468.27 112,434,247.74 49.54%
COUNTRY BUILDERS BANK INC (A RURAL BANK) 335,907,264.02 167,953,632.01 354,184,625.30 47.42%
GATEWAY RURAL BANK INC 116,098,800.57 58,049,400.29 122,636,282.32 47.33%
EQUICOM SAVINGS BANK INC 973,379,843.02 486,689,921.51 1,046,369,742.58 46.51%
BOF INC (A RURAL BANK) 585,817,793.30 292,908,896.65 642,802,469.17 45.57%
RB OF SAN NARCISO INC 49,571,542.65 24,785,771.33 55,716,472.11 44.49%
ASIA UNITED BANK CORPORATION 26,632,562,394.36 13,316,281,197.18 30,654,018,442.84 43.44%
BATAAN DEVELOPMENT BANK 102,400,000.00 51,200,000.00 120,119,828.90 42.62%
GM BANK OF LUZON INC (A RURAL BANK) 399,218,023.65 199,609,011.83 483,172,924.10 41.31%
UCPB SAVINGS BANK 2,911,217,229.07 1,455,608,614.54 3,581,278,919.06 40.64%
ILOCOS CONSOLIDATED COOPERATIVE BANK 220,545,355.50 110,272,677.75 284,860,294.22 38.71%
LIBERTY BANK (A RURAL BANK) INC 57,360,205.02 28,680,102.51 76,650,630.93 37.42%
BANGKO MABUHAY (A RURAL BANK) INC 245,624,983.54 122,812,491.77 334,650,767.06 36.70%
CHINA BANK SAVINGS INC 8,538,604,139.37 4,269,302,069.69 11,704,604,899.76 36.48%
PEOPLES BANK OF CARAGA INC (A RURAL BANK) 307,308,190.41 153,654,095.21 421,692,152.80 36.44%
RB OF MAGDALENA (LAGUNA) INC 85,455,305.51 42,727,652.76 122,538,456.32 34.87%
PBCOM RURAL BANK INC 639,586,635.86 319,793,317.93 927,005,866.32 34.50%
PHIL BANK OF COMMUNICATIONS 8,746,664,726.77 4,373,332,363.39 12,760,687,633.53 34.27%
PENBANK INC (A PDB) (FORMERLY: PENINSULA RB INC) 399,867,114.75 199,933,557.38 590,330,854.86 33.87%
LEGAZPI SAVINGS BANK INC 543,831,000.00 271,915,500.00 829,242,217.84 32.79%
FIRST IMPERIAL BUSINESS BANK INC (A RURAL BANK) 191,703,392.35 95,851,696.18 292,557,357.63 32.76%
SUGBUANON RB INC 72,802,716.56 36,401,358.28 114,310,395.26 31.84%
NEW RB OF SAN LEONARDO (N.E.) INC 160,984,753.53 80,492,376.77 253,873,504.19 31.71%
HIGHLAND RURAL BANK INC 104,122,881.70 52,061,440.85 164,486,964.13 31.65%
DUMAGUETE CITY DEV BANK INC 208,223,628.08 104,111,814.04 347,628,399.87 29.95%
PHIL SAVINGS BANK 20,331,594,046.46 10,165,797,023.23 34,887,844,715.42 29.14%
PHILIPPINE VETERANS BANK 3,309,710,736.48 1,654,855,368.24 5,739,173,216.31 28.83%
PRODUCERS SAVINGS BANK CORPORATION 1,279,848,377.17 639,924,188.59 2,271,730,683.32 28.17%
RB OF SAN PASCUAL(OBANDO BULACAN)INC 44,840,907.73 22,420,453.87 79,909,299.96 28.06%
RB OF ITOGON (BENGUET) INC 72,860,224.62 36,430,112.31 134,542,763.42 27.08%
CITIZEN'S RB (CABIAO) INC 35,650,166.27 17,825,083.14 66,191,594.12 26.93%
RNG COASTAL BANK INC(A RURAL BANK) 92,979,633.08 46,489,816.54 173,785,879.00 26.75%
ENTREPRENEUR RB INC 47,612,497.71 23,806,248.86 92,494,347.97 25.74%
COOPERATIVE BANK OF NUEVA VIZCAYA 59,212,554.23 29,606,277.12 117,291,165.47 25.24%



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, 2019. Moreover, their capital can be overstated.  See a previous blog post "Overstated Capital of Philippine Banks as of September 30, 2019"
 
As such, any reduction in their capital cushion could knock down an already weak bank.


Source: www.bsp.gov.ph

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