The Capital Adequacy Ratios of Philippine Banks - December 31, 2013

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

The general formula is as follows:

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

Tier 1 Capital

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

The formula for Tier 1 Capital is as follows:

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

Tier 1 CAR = Tier 1 Capital/Risk Weighted Assets

Tier 2 Capital

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

The formula for Tier 2 Capital is as follows:

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

Risk Weighted Assets

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

More information about this can be found here.

Minimum Capital Requirements

International Guidelines

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

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

For more information on Basel III, read this.

BSP Guidelines

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

Under these guidelines, several Philippine Banks currently do not meet these guidelines as of December 31, 2013.  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. Planters Development Bank (Total CAR of 6.04%)
3. The Real Bank (Total CAR of 6.34%)
4. The Palawan Bank (Total CAR of 8.09%)

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. Planters Development Bank (Tier One CAR of 3.02%)
10. The Real Bank (Tier One CAR of 5.43%)
11. The Palawan Bank (Tier One CAR of 5.57%)
12. China Bank Savings Inc. (Tier One CAR of 8.37%)
13. Sterling Bank of Asia Inc. (Tier One CAR of 9.86%)

The Total CAR and Tier 1 CAR of Philippine Banks as of December 31, 2013 is as follows:(Banks that do not meet BSP's minimum capital requirements are highlighted in yellow):

Philippine Banking System
TOTAL CAR
December 31, 2013
	Type of Bank	Total CAR
BATAAN SAVINGS AND LOAN BANK	Thrift	0.00
PLANTERS DEVELOPMENT BANK	Thrift	6.04
THE REAL BANK (A THRIFT BANK) INC	Thrift	6.34
THE PALAWAN BANK (PALAWAN DB) INC	Thrift	8.09
EQUICOM SAVINGS BANK INC	Thrift	10.14
UNITED COCONUT PLANTERS BANK	U/KB	10.26
CHINA BANK SAVINGS INC	Thrift	11.15
CITY SAVINGS BANK INC	Thrift	11.30
SECURITY BANK SAVINGS CORPORATION	Thrift	12.09
BANK OF THE PHIL ISLANDS	U/KB	12.15
ENTERPRISE BANK INC (A THRIFT BANK)	Thrift	12.52
PHIL POSTAL SAVINGS BANK INC	Thrift	12.52
STANDARD CHARTERED BANK	U/KB	12.89
METROPOLITAN BANK & TCO	U/KB	13.11
OPPORTUNITY KAUSWAGAN BANK INC (A MICROFINANCE	Thrift	13.28
BDO UNIBANK INC	U/KB	13.33
STERLING BANK OF ASIA INC (A SAVINGS	Thrift	13.84
COMSAVINGS BANK	Thrift	13.96
BPI FAMILY SAVINGS BANK INC	Thrift	14.12
WEALTH DEVELOPMENT BANK CORPORATION	Thrift	14.13
SECURITY BANK CORP	U/KB	14.37
UNIVERSITY SAVINGS BANK INC	Thrift	14.80
RIZAL COMM'L BANKING CORP	U/KB	15.10
BPI GLOBE BANKO INC A SAVINGS BANK	Thrift	15.40
CHINA BANKING CORP	U/KB	15.41
HONGKONG & SHANGHAI BANKING CORP	U/KB	15.45
ANZ BANKING GROUP LTD	U/KB	15.49
1ST VALLEY BANK INC A DEVELOPMENT BANK	Thrift	15.70
WORLD PARTNERS BANK (A THRIFT BANK)	Thrift	15.70
LUZON DEVELOPMENT BANK	Thrift	16.16
PHIL BANK OF COMMUNICATIONS	U/KB	16.18
PHILIPPINE RESOURCES SAVINGS BANKING	Thrift	16.31
PENBANK INC (A PDB) (FORMERLY: PENINSULA	Thrift	16.36
EAST WEST BANKING CORP	U/KB	16.44
CITIBANK SAVINGS INC	Thrift	16.45
RCBC SAVINGS BANK INC	Thrift	16.64
PHIL SAVINGS BANK	Thrift	16.92
PHIL NATIONAL BANK	U/KB	16.95
VILLAGE BANK INC (A THRIFT BANK)	Thrift	17.14
HIYAS BANKING CORPORATION	Thrift	17.37
FARMERS SAVINGS & LOAN BANK INC	Thrift	17.93
BPI DIRECT SAVINGS BANK INC	Thrift	18.25
ASIA UNITED BANK	U/KB	18.29
PRODUCERS SAVINGS BANK CORPORATION	U/KB	18.74
NORTHPOINT DEV'T BANK INC	Thrift	19.23
UNION BANK OF THE PHILS	U/KB	19.68
BATAAN DEVELOPMENT BANK	Thrift	19.86
LAND BANK OF THE PHILIPPINES	U/KB	20.10
PHILIPPINE VETERANS BANK	U/KB	20.23
CITIBANK, N.A.	U/KB	20.54
MAYBANK PHILIPPINES INC	U/KB	20.64
MALAYAN BANK SAVINGS AND MORT BANK INC	Thrift	21.38
ROBINSONS BANK CORPORATION	U/KB	22.69
BANK OF COMMERCE	U/KB	22.91
THE BNK OF TOKYO-MITSUBISHI UFJ LTD	U/KB	23.45
DUMAGUETE CITY DEV BANK INC	Thrift	23.79
FIRST CONSOLIDATED BANK INC (A PDB)	Thrift	24.00
PHILIPPINE BUSINESS BANK INC A SAVINGS	Thrift	24.22
DEVELOPMENT BANK OF THE PHIL	U/KB	24.33
BANK OF CHINA LIMITED-MANILA BRANCH	U/KB	24.95
UCPB SAVINGS BANK	Thrift	25.61
CTBC BANK (PHILIPPINES) CORP	U/KB	25.99
ALLIED SAVINGS BANK	Thrift	26.05
MIZUHO BANK LTD - MANILA BRANCH	U/KB	26.43
METRO CEBU PUBLIC SAVINGS BANK	Thrift	27.38
CARD SME BANK INC A THRIFT BANK	Thrift	27.77
BUSINESS AND CONSUMERS BANK (A DB)	Thrift	29.40
LIFE SAVINGS BANK INC	Thrift	29.88
KOREA EXCHANGE BANK	U/KB	30.22
DEUTSCHE BANK AG	U/KB	30.47
INTER-ASIA DEVELOPMENT BANK	Thrift	31.10
HSBC SAVINGS BANK(PHILS) INC	Thrift	31.30
CITYSTATE SAVINGS BANK INC	Thrift	31.61
MICROFINANCE MAXIMUM SB INC	Thrift	31.85
CORDILLERA SAVINGS BANK INC	Thrift	32.66
LEMERY SAVINGS & LOAN BANK, INC.	Thrift	32.92
MEGA INT'L COMM'L BANK CO LTD	U/KB	33.93
MARITIME SAVINGS BANK CORPORATION	Thrift	35.24
PHIL TRUST COMPANY	U/KB	35.93
PAMPANGA DEVELOPMENT BANK	Thrift	37.58
BDO PRIVATE BANK, INC.	U/KB	37.73
INTERNATIONALE NEDERLANDEN GROEP BK	U/KB	40.44
MALASIQUI PROGRESSIVE SLB, INC	Thrift	45.99
TONGYANG SAVINGS BANK INC	Thrift	46.38
SUN SAVINGS BANK INC	Thrift	46.56
DUNGGANON BANK (A MICROFINANCE THRIFT	Thrift	49.95
QUEEN CITY DEVELOPMENT BANK INC OR QUEENBANK	Thrift	50.54
PACIFIC ACE SAVINGS BANK INC	Thrift	51.89
TOWER DEVELOPMENT BANK	Thrift	52.68
PRIDE STAR DEVELOPMENT BANK INC	Thrift	52.93
SAMPAGUITA SAVINGS BANK INC	Thrift	55.83
BANK OF AMERICA N.A.	U/KB	56.29
JP MORGAN CHASE BANK NATIONAL ASSN.	U/KB	56.71
OPTIMUM DEVELOPMENT BANK INC	Thrift	57.91
PROGRESS SAVINGS AND LOAN BANK INC	U/KB	58.76
QUEZON COCONUT BANK INC (A THRIFT BANK)	Thrift	67.25
MERCHANTS SAVINGS & LOAN ASSN INC	Thrift	69.79
BANK ONE SAVINGS AND TRUST CORP.	Thrift	71.93
MBANK PHILIPPINES (A THRIFT BANK) INC	Thrift	79.24
BANGKOK BANK PUBLIC CO LTD	U/KB	88.76
CENTURY SAVINGS BANK CORPORATION	Thrift	90.55
AL-AMANAH ISLAMIC INVESTMENT BANK OF THE PHILS	U/KB	132.08
UNITED OVERSEAS BANK PHILIPPINES	Thrift	137.17
ISLA BANK(A THRIFT BANK) INC	Thrift	235.87
BDO ELITE SAVINGS BANK INC	Thrift	527.45

Philippine Banking System
Tier One CAR
December 31, 2013
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
PLANTERS DEVELOPMENT BANK	Thrift	3.02
THE REAL BANK (A THRIFT BANK) INC	Thrift	5.43
THE PALAWAN BANK (PALAWAN DB) INC	Thrift	5.57
CHINA BANK SAVINGS INC	Thrift	8.47
STERLING BANK OF ASIA INC (A SAVINGS	Thrift	9.86
UNITED COCONUT PLANTERS BANK	U/KB	10.26
CITY SAVINGS BANK INC	Thrift	10.42
SECURITY BANK SAVINGS CORPORATION	Thrift	11.17
PHIL POSTAL SAVINGS BANK INC	Thrift	11.59
PHIL BANK OF COMMUNICATIONS	U/KB	11.83
BANK OF THE PHIL ISLANDS	U/KB	12.15
STANDARD CHARTERED BANK	U/KB	12.32
WEALTH DEVELOPMENT BANK CORPORATION	Thrift	13.09
METROPOLITAN BANK & TCO	U/KB	13.11
BDO UNIBANK INC	U/KB	13.22
BPI FAMILY SAVINGS BANK INC	Thrift	13.23
PHIL SAVINGS BANK	Thrift	13.81
EAST WEST BANKING CORP	U/KB	13.83
LAND BANK OF THE PHILIPPINES	U/KB	13.98
SECURITY BANK CORP	U/KB	14.37
PHILIPPINE RESOURCES SAVINGS BANKING	Thrift	14.70
BPI GLOBE BANKO INC A SAVINGS BANK	Thrift	14.76
CHINA BANKING CORP	U/KB	14.79
COMSAVINGS BANK	Thrift	14.91
LUZON DEVELOPMENT BANK	Thrift	15.03
ANZ BANKING GROUP LTD	U/KB	15.07
RIZAL COMM'L BANKING CORP	U/KB	15.10
WORLD PARTNERS BANK (A THRIFT BANK)	Thrift	15.22
PHIL NATIONAL BANK	U/KB	15.37
HONGKONG & SHANGHAI BANKING CORP	U/KB	15.45
PENBANK INC (A PDB) (FORMERLY: PENINSULA	Thrift	15.70
CITIBANK SAVINGS INC	Thrift	15.76
RCBC SAVINGS BANK INC	Thrift	15.96
DEVELOPMENT BANK OF THE PHIL	U/KB	16.75
VILLAGE BANK INC (A THRIFT BANK)	Thrift	16.76
FARMERS SAVINGS & LOAN BANK INC	Thrift	17.03
HIYAS BANKING CORPORATION	Thrift	17.10
BPI DIRECT SAVINGS BANK INC	Thrift	17.38
PRODUCERS SAVINGS BANK CORPORATION	Thrift	18.07
ASIA UNITED BANK	U/KB	18.15
UNION BANK OF THE PHILS	U/KB	18.79
NORTHPOINT DEV'T BANK INC	Thrift	19.23
MAYBANK PHILIPPINES INC	U/KB	19.52
BATAAN DEVELOPMENT BANK	Thrift	19.61
CITIBANK, N.A.	U/KB	19.79
PHILIPPINE VETERANS BANK	U/KB	20.18
MALAYAN BANK SAVINGS AND MORT BANK INC	Thrift	20.77
THE BNK OF TOKYO-MITSUBISHI UFJ LTD	U/KB	22.63
ROBINSONS BANK CORPORATION	U/KB	22.69
BANK OF COMMERCE	U/KB	22.75
FIRST CONSOLIDATED BANK INC (A PDB)	Thrift	23.09
DUMAGUETE CITY DEV BANK INC	Thrift	23.39
PHILIPPINE BUSINESS BANK INC A SAVINGS	Thrift	23.58
BANK OF CHINA LIMITED-MANILA BRANCH	U/KB	24.38
UCPB SAVINGS BANK	Thrift	24.87
ALLIED SAVINGS BANK	Thrift	25.19
CTBC BANK (PHILIPPINES) CORP	U/KB	25.23
MIZUHO BANK LTD - MANILA BRANCH	U/KB	25.49
METRO CEBU PUBLIC SAVINGS BANK	Thrift	26.73
KOREA EXCHANGE BANK	U/KB	29.81
DEUTSCHE BANK AG	U/KB	30.11
HSBC SAVINGS BANK(PHILS) INC	Thrift	30.62
CITYSTATE SAVINGS BANK INC	Thrift	31.10
CORDILLERA SAVINGS BANK INC	Thrift	32.20
LEMERY SAVINGS & LOAN BANK, INC.	Thrift	32.59
MEGA INT'L COMM'L BANK CO LTD	U/KB	32.98
PHIL TRUST COMPANY	U/KB	35.53
BDO PRIVATE BANK, INC.	U/KB	37.57
INTERNATIONALE NEDERLANDEN GROEP BK	U/KB	40.19
MICROFINANCE MAXIMUM SB INC	Thrift	42.65
OPPORTUNITY KAUSWAGAN BANK INC (A MICROFINANCE	Thrift	43.63
SUN SAVINGS BANK INC	Thrift	45.66
MALASIQUI PROGRESSIVE SLB, INC	Thrift	45.80
TONGYANG SAVINGS BANK INC	Thrift	46.38
DUNGGANON BANK (A MICROFINANCE THRIFT	Thrift	49.61
QUEEN CITY DEVELOPMENT BANK INC OR QUEENBANK	Thrift	50.03
UNIVERSITY SAVINGS BANK INC	Thrift	50.81
PACIFIC ACE SAVINGS BANK INC	Thrift	51.79
BANK OF AMERICA N.A.	U/KB	56.09
JP MORGAN CHASE BANK NATIONAL ASSN.	U/KB	56.55
PROGRESS SAVINGS AND LOAN BANK INC	Thrift	58.76
QUEZON COCONUT BANK INC (A THRIFT BANK)	Thrift	58.83
SAMPAGUITA SAVINGS BANK INC	Thrift	60.09
LIFE SAVINGS BANK INC	Thrift	64.98
PRIDE STAR DEVELOPMENT BANK INC	Thrift	68.06
MERCHANTS SAVINGS & LOAN ASSN INC	Thrift	69.59
BANK ONE SAVINGS AND TRUST CORP.	Thrift	71.47
MBANK PHILIPPINES (A THRIFT BANK) INC	Thrift	79.24
BANGKOK BANK PUBLIC CO LTD	U/KB	87.79
CENTURY SAVINGS BANK CORPORATION	Thrift	89.51
TOWER DEVELOPMENT BANK	Thrift	110.08
PAMPANGA DEVELOPMENT BANK	Thrift	116.10
AL-AMANAH ISLAMIC INVESTMENT BANK OF THE PHILS	U/KB	132.08
UNITED OVERSEAS BANK PHILIPPINES	Thrift	137.02
ISLA BANK(A THRIFT BANK) INC	Thrift	235.60
CARD SME BANK INC A THRIFT BANK	Thrift	264.25
BDO ELITE SAVINGS BANK INC	Thrift	527.45

Source: www.bsp.gov.ph

An 80% Minimum NPL Coverage Ratio will Result in a Severe Undercapitalization of Some Philippine Banks - September 30, 2013

In a previous blog post called "Are Philippine Banks Under Provisioning Loan Losses", we discussed the current aggregate Loan Loss Reserves (LLR) as a percentage of Total Loan Portfolio (TLP), which stood at 3.06% as of September 30, 2013, is below the historic average of 4.32% for the last thirty years.  Despite NPLs being at or near historic lows, some banks still have not adequately provisioned for loan losses.  Their NPL Coverage Ratios are below the ideal ratio of 100% and even below the suggested minimum of 80% NPL Coverage Ratio.

As the table below suggests, it seems that around 48 banks (highlighted in yellow) fall into this deficiency.

Philippine Banking System
NPL Coverage Ratio
September 30, 2013
Bank	Loan Loss Provisions	Gross NPLs	NPL Coverage Ratio
MARITIME SAVINGS BANK CORPORATION	2,755,197.36	21,081,945.79	13.07%
THE REAL BANK (A THRIFT BANK) INC	526,788,211.44	3,676,265,796.17	14.33%
OPPORTUNITY KAUSWAGAN BANK INC (A MICROFINANCE THRIFT BANK)	14,037,329.53	86,081,823.47	16.31%
QUEZON COCONUT BANK INC (A THRIFT BANK)	1,315,623.91	6,021,526.16	21.85%
LIFE SAVINGS BANK INC	2,499,806.08	11,066,411.65	22.59%
ALLIED SAVINGS BANK	97,689,310.15	427,675,246.13	22.84%
ASIA UNITED BANK CORPORATION	346,908,757.50	1,484,724,998.75	23.37%
NORTHPOINT DEV'T BANK INC	10,416,512.17	41,343,785.62	25.19%
METRO CEBU PUBLIC SAVINGS BANK	2,398,407.23	9,259,450.09	25.90%
PENBANK INC (A PDB) (FORMERLY: PENINSULA RB INC)	25,421,979.33	90,697,987.61	28.03%
PROGRESS SAVINGS AND LOAN BANK INC	350,304.43	1,239,886.20	28.25%
ILOILO CITY DEVELOPMENT BANK	6,841,846.23	24,049,605.18	28.45%
EQUICOM SAVINGS BANK INC	65,569,309.41	226,206,776.15	28.99%
CENTURY SAVINGS BANK CORPORATION	12,647,178.45	40,262,101.54	31.41%
LUZON DEVELOPMENT BANK	73,383,717.80	219,963,748.95	33.36%
COMSAVINGS BANK	60,506,624.39	180,956,095.42	33.44%
BANK ONE SAVINGS AND TRUST CORP.	6,814,595.47	20,076,854.81	33.94%
PLANTERS DEVELOPMENT BANK	1,149,408,436.37	3,305,372,801.44	34.77%
MALASIQUI PROGRESSIVE SLB, INC	6,470,762.05	17,567,906.25	36.83%
ENTERPRISE BANK INC (A THRIFT BANK)	45,202,575.16	121,575,888.04	37.18%
PRODUCERS SAVINGS BANK CORPORATION	79,316,012.39	202,521,421.54	39.16%
HIYAS BANKING CORPORATION	12,588,045.27	31,733,803.62	39.67%
BATAAN DEVELOPMENT BANK	14,648,342.79	35,501,329.21	41.26%
PAMPANGA DEVELOPMENT BANK	17,188,806.56	40,236,948.19	42.72%
SILANGAN SAVINGS & LOAN BANK INC	8,293,170.71	19,342,509.99	42.88%
BUSINESS AND CONSUMERS BANK (A DB)	7,147,375.56	16,543,047.39	43.20%
DUNGGANON BANK (A MICROFINANCE THRIFT	8,342,028.88	19,265,232.54	43.30%
WEALTH DEVELOPMENT BANK CORPORATION	56,853,212.07	127,076,803.11	44.74%
STERLING BANK OF ASIA INC (A SAVINGS BANK)	378,289,259.22	782,703,074.20	48.33%
PHILIPPINE RESOURCES SAVINGS BANKING	279,030,301.24	530,093,760.55	52.64%
MALAYAN BANK SAVINGS AND MORT BANK INC	167,201,180.52	307,337,266.81	54.40%
LEMERY SAVINGS & LOAN BANK, INC.	5,008,824.64	8,615,082.76	58.14%
CITYSTATE SAVINGS BANK INC	27,682,977.13	47,071,949.74	58.81%
CHINA BANK SAVINGS INC	133,392,773.32	226,221,032.39	58.97%
UNIVERSITY SAVINGS BANK INC	35,709,066.20	56,256,741.84	63.48%
DUMAGUETE CITY DEVELOPMENT BANK INC	17,300,528.04	27,051,197.57	63.95%
MICROFINANCE MAXIMUM SB INC	779,614.11	1,195,287.06	65.22%
FARMERS SAVINGS & LOAN BANK INC	27,008,200.05	41,146,586.00	65.64%
VILLAGE BANK INC (A THRIFT BANK)	17,342,200.42	26,309,046.44	65.92%
MAYBANK PHILIPPINES INC	722,355,900.75	1,086,048,088.92	66.51%
RCBC SAVINGS BANK INC	1,395,339,512.49	2,058,816,470.70	67.77%
PRIDE STAR DEVELOPMENT BANK INC	6,090,315.48	8,634,935.83	70.53%
EAST WEST BANKING CORP	3,423,561,712.01	4,729,518,467.90	72.39%
QUEEN CITY DEVELOPMENT BANK INC OR QUEENBANK A THRIFT BANK	24,216,873.63	32,495,043.40	74.52%
WORLD PARTNERS BANK (A THRIFT BANK)	67,995,384.68	88,154,241.39	77.13%
BATAAN SAVINGS AND LOAN BANK	2,137,583.98	2,770,214.85	77.16%
SECURITY BANK SAVINGS CORPORATION	611,132,584.13	771,924,973.74	79.17%
TONG YANG SAVINGS BANK INC	93,476,547.29	117,167,791.14	79.78%
BPI GLOBE BANKO INC A SAVINGS BANK	149,827,599.44	184,972,059.46	81.00%
BANK OF COMMERCE	3,263,906,977.90	4,016,356,222.98	81.27%
THE PALAWAN BANK (PALAWAN DB) INC	10,510,692.74	12,816,840.35	82.01%
BPI FAMILY SAVINGS BANK INC	3,898,306,266.22	4,587,952,154.71	84.97%
UNITED COCONUT PLANTERS BANK	4,884,292,003.51	5,741,683,988.58	85.07%
TOWER DEVELOPMENT BANK	8,420,489.57	9,855,607.32	85.44%
INTER-ASIA DEVELOPMENT BANK	2,897,885.27	3,346,585.72	86.59%
SAMPAGUITA SAVINGS BANK INC	21,561,538.64	24,566,592.56	87.77%
PHILIPPINE BUSINESS BANK INC A SAVINGS	629,667,501.15	713,515,607.33	88.25%
PHILIPPINE POSTAL SAVINGS BANK INC	331,359,287.05	365,776,413.52	90.59%
PHILIPPINE VETERANS BANK	1,022,995,980.01	1,126,133,863.31	90.84%
PHILIPPINE NATIONAL BANK	9,704,191,604.78	10,326,705,113.23	93.97%
FIRST CONSOLIDATED BANK INC (A PDB)	435,168,128.95	439,534,380.11	99.01%
CITIBANK SAVINGS INC	2,711,660,215.09	2,725,163,565.91	99.50%
DEVELOPMENT BANK OF THE PHILIPPINES	5,748,150,904.06	5,747,728,689.61	100.01%
UNITED OVERSEAS BANK PHILIPPINES	666,156,502.81	664,875,061.65	100.19%
ROBINSONS BANK CORPORATION	448,101,571.11	426,874,861.97	104.97%
CITY SAVINGS BANK INC	263,506,197.25	248,807,968.00	105.91%
PHIL BANK OF COMMUNICATIONS	1,415,602,379.93	1,331,723,088.72	106.30%
PACIFIC ACE SAVINGS BANK INC	5,831,514.14	5,392,641.51	108.14%
RIZAL COMMERCIAL BANKING CORP	4,195,412,782.27	3,813,174,399.56	110.02%
SUN SAVINGS BANK INC	6,983,097.02	6,245,559.79	111.81%
UNION BANK OF THE PHILIPPINES	10,474,098,474.06	9,281,609,151.50	112.85%
CTBC BANK (PHILIPPINES) CORPORATION	339,842,558.82	293,736,854.58	115.70%
BPI DIRECT SAVINGS BANK INC	179,438,997.16	154,650,566.46	116.03%
PHILIPPINE SAVINGS BANK	4,440,018,970.72	3,746,195,124.94	118.52%
STANDARD CHARTERED BANK	1,283,549,562.49	1,073,584,225.34	119.56%
CORDILLERA SAVINGS BANK INC	20,158,075.79	16,690,807.03	120.77%
HONGKONG & SHANGHAI BANKING CORPORATION	924,382,521.13	719,591,328.75	128.46%
BANK OF THE PHILIPPINE ISLANDS	10,222,288,689.92	7,459,301,933.47	137.04%
LAND BANK OF THE PHILIPPINES	12,738,957,884.59	9,217,532,081.02	138.20%
BDO UNIBANK INC	32,342,917,673.23	22,361,024,360.61	144.64%
UCPB SAVINGS BANK	350,261,874.20	238,181,901.40	147.06%
HSBC SAVINGS BANK (PHILS) INC	193,052,911.44	130,672,215.76	147.74%
CHINA BANKING CORPORATION	7,000,428,960.83	4,718,030,496.01	148.38%
MERCHANTS SAVINGS & LOAN ASSOCIATION INC	4,821,110.57	3,144,449.34	153.32%
CARD SME BANK INC A THRIFT BANK	29,230,731.85	18,325,325.68	159.51%
PHILIPPINE TRUST COMPANY	1,967,493,051.56	1,147,542,163.55	171.45%
KOREA EXCHANGE BANK	98,698,140.37	41,519,190.16	237.72%
AL-AMANAH ISLAMIC INVESTMENT BANK OF THE PHILS	2,998,213.08	1,156,048.97	259.35%
METROPOLITAN BANK & TRUST CO	8,297,403,841.21	2,923,573,649.37	283.81%
SECURITY BANK CORPORATION	2,339,846,759.96	740,210,526.40	316.11%
OPTIMUM DEVELOPMENT BANK INC	44,661,296.13	13,837,575.70	322.75%
CITIBANK, N.A.	5,425,724,956.57	790,687,359.90	686.20%
ANZ BANKING GROUP LTD	264,857,945.34	23,339,114.85	1134.82%
JP MORGAN CHASE BANK NATIONAL ASSOCIATION	15,435,400.00	734,885.22	2100.38%
BANGKOK BANK PUBLIC CO LTD	127,364,870.00	5,034,155.55	2530.01%
INTERNATIONALE NEDERLANDEN GROEP BK	167,503,858.26	89.08	188037559.79%
BANK OF AMERICA N.A.	10,250,004.00	4.00	256250100.00%
BANK OF CHINA LIMITED-MANILA BRANCH	59,231,492.72	0.00	NA
BDO ELITE SAVINGS BANK INC	0.00	0.00	NA
BDO PRIVATE BANK, INC.	48,860,938.02	0.00	NA
DEUTSCHE BANK AG	194,961,088.56	0.00	NA
ISLA BANK (A THRIFT BANK) INC	4,024,580.33	0.00	NA
MEGA INTERNATIONAL COMMERCIAL BANK CO LTD	206,566,716.20	0.00	NA
MIZUHO BANK LTD - MANILA BRANCH	294,448,818.10	0.00	NA
THE BANK OF TOKYO-MITSUBISHI UFJ LTD	354,910,030.46	0.00	NA
Grand Total	150,390,056,934.60	129,096,349,834.78	116.49%

Raising the NPL Coverage Ratio to a minimum of 80% will entail additional loan loss provisions for some banks that could eat into a substantial chunk (20% or more) of their Stockholder's Equity.  Based on the table below, around 12 banks will be severely affected:

Philippine Banking System
Impact on SE of Minimum Loan Loss Provisions
September 30, 2013
Bank	Gross NPLs	Minimum Loan Loss Provisions at 80% NPL Coverage Ratio	Actual Loan Loss Provisions	Excess/Deficit Loan Loss Provisions	Stockholder's Equity	Impact on SE
THE REAL BANK (A THRIFT BANK) INC	3,676,265,796.17	2,941,012,636.94	526,788,211.44	-2,414,224,425.50	760,367,463.02	-317.51%
OPPORTUNITY KAUSWAGAN BANK INC (A MICROFINANCE THRIFT BANK)	86,081,823.47	68,865,458.78	14,037,329.53	-54,828,129.25	74,291,602.90	-73.80%
SILANGAN SAVINGS & LOAN BANK INC	19,342,509.99	15,474,007.99	8,293,170.71	-7,180,837.28	10,025,580.13	-71.63%
PLANTERS DEVELOPMENT BANK	3,305,372,801.44	2,644,298,241.15	1,149,408,436.37	-1,494,889,804.78	3,133,227,648.33	-47.71%
NORTHPOINT DEV'T BANK INC	41,343,785.62	33,075,028.50	10,416,512.17	-22,658,516.33	76,016,688.85	-29.81%
COMSAVINGS BANK	180,956,095.42	144,764,876.34	60,506,624.39	-84,258,251.95	290,532,377.98	-29.00%
ENTERPRISE BANK INC (A THRIFT BANK)	121,575,888.04	97,260,710.43	45,202,575.16	-52,058,135.27	189,654,635.05	-27.45%
ALLIED SAVINGS BANK	427,675,246.13	342,140,196.90	97,689,310.15	-244,450,886.75	972,514,395.43	-25.14%
LUZON DEVELOPMENT BANK	219,963,748.95	175,970,999.16	73,383,717.80	-102,587,281.36	422,992,285.10	-24.25%
EQUICOM SAVINGS BANK INC	226,206,776.15	180,965,420.92	65,569,309.41	-115,396,111.51	486,433,820.41	-23.72%
MARITIME SAVINGS BANK CORPORATION	21,081,945.79	16,865,556.63	2,755,197.36	-14,110,359.27	66,310,245.43	-21.28%
BATAAN DEVELOPMENT BANK	35,501,329.21	28,401,063.37	14,648,342.79	-13,752,720.58	65,886,982.35	-20.87%
PENBANK INC (A PDB) (FORMERLY: PENINSULA RB INC)	90,697,987.61	72,558,390.09	25,421,979.33	-47,136,410.76	266,219,853.55	-17.71%
ILOILO CITY DEVELOPMENT BANK	24,049,605.18	19,239,684.14	6,841,846.23	-12,397,837.91	76,402,736.36	-16.23%
STERLING BANK OF ASIA INC (A SAVINGS BANK)	782,703,074.20	626,162,459.36	378,289,259.22	-247,873,200.14	1,668,574,318.71	-14.86%
PAMPANGA DEVELOPMENT BANK	40,236,948.19	32,189,558.55	17,188,806.56	-15,000,751.99	106,022,568.94	-14.15%
MALASIQUI PROGRESSIVE SLB, INC	17,567,906.25	14,054,325.00	6,470,762.05	-7,583,562.95	54,435,015.90	-13.93%
WEALTH DEVELOPMENT BANK CORPORATION	127,076,803.11	101,661,442.49	56,853,212.07	-44,808,230.42	401,547,654.84	-11.16%
LIFE SAVINGS BANK INC	11,066,411.65	8,853,129.32	2,499,806.08	-6,353,323.24	64,886,737.17	-9.79%
PHILIPPINE RESOURCES SAVINGS BANKING	530,093,760.55	424,075,008.44	279,030,301.24	-145,044,707.20	1,527,666,933.73	-9.49%
DUNGGANON BANK (A MICROFINANCE THRIFT	19,265,232.54	15,412,186.03	8,342,028.88	-7,070,157.15	84,133,843.30	-8.40%
HIYAS BANKING CORPORATION	31,733,803.62	25,387,042.90	12,588,045.27	-12,798,997.63	159,014,472.02	-8.05%
METRO CEBU PUBLIC SAVINGS BANK	9,259,450.09	7,407,560.07	2,398,407.23	-5,009,152.84	63,907,837.08	-7.84%
BUSINESS AND CONSUMERS BANK (A DB)	16,543,047.39	13,234,437.91	7,147,375.56	-6,087,062.35	81,435,262.58	-7.47%
MALAYAN BANK SAVINGS AND MORT BANK INC	307,337,266.81	245,869,813.45	167,201,180.52	-78,668,632.93	1,081,058,516.12	-7.28%
PRODUCERS SAVINGS BANK CORPORATION	202,521,421.54	162,017,137.23	79,316,012.39	-82,701,124.84	1,173,120,829.04	-7.05%
QUEZON COCONUT BANK INC (A THRIFT BANK)	6,021,526.16	4,817,220.93	1,315,623.91	-3,501,597.02	58,237,618.64	-6.01%
FARMERS SAVINGS & LOAN BANK INC	41,146,586.00	32,917,268.80	27,008,200.05	-5,909,068.75	112,083,965.94	-5.27%
VILLAGE BANK INC (A THRIFT BANK)	26,309,046.44	21,047,237.15	17,342,200.42	-3,705,036.73	73,694,723.45	-5.03%
ASIA UNITED BANK CORPORATION	1,484,724,998.75	1,187,779,999.00	346,908,757.50	-840,871,241.50	17,857,415,118.55	-4.71%
CHINA BANK SAVINGS INC	226,221,032.39	180,976,825.91	133,392,773.32	-47,584,052.59	1,082,493,058.81	-4.40%
UNIVERSITY SAVINGS BANK INC	56,256,741.84	45,005,393.47	35,709,066.20	-9,296,327.27	211,977,767.06	-4.39%
RCBC SAVINGS BANK INC	2,058,816,470.70	1,647,053,176.56	1,395,339,512.49	-251,713,664.07	7,385,685,863.54	-3.41%
LEMERY SAVINGS & LOAN BANK, INC.	8,615,082.76	6,892,066.21	5,008,824.64	-1,883,241.57	68,438,323.19	-2.75%
WORLD PARTNERS BANK (A THRIFT BANK)	88,154,241.39	70,523,393.11	67,995,384.68	-2,528,008.43	104,831,569.74	-2.41%
CENTURY SAVINGS BANK CORPORATION	40,262,101.54	32,209,681.23	12,647,178.45	-19,562,502.78	911,189,647.34	-2.15%
DUMAGUETE CITY DEVELOPMENT BANK INC	27,051,197.57	21,640,958.06	17,300,528.04	-4,340,430.02	207,683,079.52	-2.09%
EAST WEST BANKING CORP	4,729,518,467.90	3,783,614,774.32	3,423,561,712.01	-360,053,062.31	18,780,806,566.60	-1.92%
BANK ONE SAVINGS AND TRUST CORP.	20,076,854.81	16,061,483.85	6,814,595.47	-9,246,888.38	540,089,692.66	-1.71%
MAYBANK PHILIPPINES INC	1,086,048,088.92	868,838,471.14	722,355,900.75	-146,482,570.39	10,140,595,987.28	-1.44%
CITYSTATE SAVINGS BANK INC	47,071,949.74	37,657,559.79	27,682,977.13	-9,974,582.66	790,545,549.10	-1.26%
PRIDE STAR DEVELOPMENT BANK INC	8,634,935.83	6,907,948.66	6,090,315.48	-817,633.18	69,970,467.36	-1.17%
PROGRESS SAVINGS AND LOAN BANK INC	1,239,886.20	991,908.96	350,304.43	-641,604.53	83,394,670.11	-0.77%
SECURITY BANK SAVINGS CORPORATION	771,924,973.74	617,539,978.99	611,132,584.13	-6,407,394.86	1,095,151,496.40	-0.59%
MICROFINANCE MAXIMUM SB INC	1,195,287.06	956,229.65	779,614.11	-176,615.54	53,366,623.19	-0.33%
QUEEN CITY DEVELOPMENT BANK INC OR QUEENBANK A THRIFT BANK	32,495,043.40	25,996,034.72	24,216,873.63	-1,779,161.09	656,057,455.54	-0.27%
BATAAN SAVINGS AND LOAN BANK	2,770,214.85	2,216,171.88	2,137,583.98	-78,587.90	71,221,347.13	-0.11%
TONG YANG SAVINGS BANK INC	117,167,791.14	93,734,232.91	93,476,547.29	-257,685.62	389,060,296.20	-0.07%
BDO ELITE SAVINGS BANK INC	0.00	0.00	0.00	0.00	1,600,883,444.68	0.00%
BANK OF COMMERCE	4,016,356,222.98	3,213,084,978.38	3,263,906,977.90	50,821,999.52	15,518,003,350.98	0.33%
INTER-ASIA DEVELOPMENT BANK	3,346,585.72	2,677,268.58	2,897,885.27	220,616.69	52,621,713.94	0.42%
MERCHANTS SAVINGS & LOAN ASSOCIATION INC	3,144,449.34	2,515,559.47	4,821,110.57	2,305,551.10	506,500,666.78	0.46%
TOWER DEVELOPMENT BANK	9,855,607.32	7,884,485.86	8,420,489.57	536,003.71	110,445,201.58	0.49%
AL-AMANAH ISLAMIC INVESTMENT BANK OF THE PHILS	1,156,048.97	924,839.18	2,998,213.08	2,073,373.90	406,949,575.79	0.51%
BPI GLOBE BANKO INC A SAVINGS BANK	184,972,059.46	147,977,647.57	149,827,599.44	1,849,951.87	326,013,506.53	0.57%
ISLA BANK (A THRIFT BANK) INC	0.00	0.00	4,024,580.33	4,024,580.33	640,603,002.19	0.63%
JP MORGAN CHASE BANK NATIONAL ASSOCIATION	734,885.22	587,908.18	15,435,400.00	14,847,491.82	2,148,653,104.95	0.69%
BDO PRIVATE BANK, INC.	0.00	0.00	48,860,938.02	48,860,938.02	6,254,571,149.37	0.78%
PHILIPPINE BUSINESS BANK INC A SAVINGS	713,515,607.33	570,812,485.86	629,667,501.15	58,855,015.29	7,262,313,325.38	0.81%
THE PALAWAN BANK (PALAWAN DB) INC	12,816,840.35	10,253,472.28	10,510,692.74	257,220.46	24,105,699.34	1.07%
BPI FAMILY SAVINGS BANK INC	4,587,952,154.71	3,670,361,723.77	3,898,306,266.22	227,944,542.45	17,392,299,117.83	1.31%
UNITED COCONUT PLANTERS BANK	5,741,683,988.58	4,593,347,190.86	4,884,292,003.51	290,944,812.65	20,746,333,625.69	1.40%
CTBC BANK (PHILIPPINES) CORPORATION	293,736,854.58	234,989,483.66	339,842,558.82	104,853,075.16	6,445,548,838.27	1.63%
BANK OF AMERICA N.A.	4.00	3.20	10,250,004.00	10,250,000.80	596,946,705.20	1.72%
PHILIPPINE VETERANS BANK	1,126,133,863.31	900,907,090.65	1,022,995,980.01	122,088,889.36	6,992,435,561.67	1.75%
SUN SAVINGS BANK INC	6,245,559.79	4,996,447.83	6,983,097.02	1,986,649.19	108,751,688.11	1.83%
PHILIPPINE NATIONAL BANK	10,326,705,113.23	8,261,364,090.58	9,704,191,604.78	1,442,827,514.20	76,832,904,546.38	1.88%
ROBINSONS BANK CORPORATION	426,874,861.97	341,499,889.58	448,101,571.11	106,601,681.53	5,351,042,759.62	1.99%
PACIFIC ACE SAVINGS BANK INC	5,392,641.51	4,314,113.21	5,831,514.14	1,517,400.93	74,921,481.62	2.03%
CITY SAVINGS BANK INC	248,807,968.00	199,046,374.40	263,506,197.25	64,459,822.85	2,910,703,059.42	2.21%
RIZAL COMMERCIAL BANKING CORP	3,813,174,399.56	3,050,539,519.65	4,195,412,782.27	1,144,873,262.62	46,084,616,203.42	2.48%
DEVELOPMENT BANK OF THE PHILIPPINES	5,747,728,689.61	4,598,182,951.69	5,748,150,904.06	1,149,967,952.37	40,032,419,521.04	2.87%
HSBC SAVINGS BANK (PHILS) INC	130,672,215.76	104,537,772.61	193,052,911.44	88,515,138.83	2,844,445,241.76	3.11%
SAMPAGUITA SAVINGS BANK INC	24,566,592.56	19,653,274.05	21,561,538.64	1,908,264.59	55,513,886.63	3.44%
FIRST CONSOLIDATED BANK INC (A PDB)	439,534,380.11	351,627,504.09	435,168,128.95	83,540,624.86	2,060,481,532.50	4.05%
BANK OF THE PHILIPPINE ISLANDS	7,459,301,933.47	5,967,441,546.78	10,222,288,689.92	4,254,847,143.14	101,513,950,073.79	4.19%
SECURITY BANK CORPORATION	740,210,526.40	592,168,421.12	2,339,846,759.96	1,747,678,338.84	40,439,589,096.64	4.32%
METROPOLITAN BANK & TRUST CO	2,923,573,649.37	2,338,858,919.50	8,297,403,841.21	5,958,544,921.71	132,913,338,941.49	4.48%
OPTIMUM DEVELOPMENT BANK INC	13,837,575.70	11,070,060.56	44,661,296.13	33,591,235.57	718,776,831.06	4.67%
PHILIPPINE TRUST COMPANY	1,147,542,163.55	918,033,730.84	1,967,493,051.56	1,049,459,320.72	20,331,893,875.73	5.16%
INTERNATIONALE NEDERLANDEN GROEP BK	89.08	71.26	167,503,858.26	167,503,787.00	3,132,011,905.89	5.35%
PHILIPPINE POSTAL SAVINGS BANK INC	365,776,413.52	292,621,130.82	331,359,287.05	38,738,156.23	679,474,343.21	5.70%
HONGKONG & SHANGHAI BANKING CORPORATION	719,591,328.75	575,673,063.00	924,382,521.13	348,709,458.13	5,814,019,507.53	6.00%
BPI DIRECT SAVINGS BANK INC	154,650,566.46	123,720,453.17	179,438,997.16	55,718,543.99	927,369,890.78	6.01%
CARD SME BANK INC A THRIFT BANK	18,325,325.68	14,660,260.54	29,230,731.85	14,570,471.31	237,063,154.84	6.15%
UCPB SAVINGS BANK	238,181,901.40	190,545,521.12	350,261,874.20	159,716,353.08	2,567,896,185.64	6.22%
CORDILLERA SAVINGS BANK INC	16,690,807.03	13,352,645.62	20,158,075.79	6,805,430.17	101,030,080.16	6.74%
PHIL BANK OF COMMUNICATIONS	1,331,723,088.72	1,065,378,470.98	1,415,602,379.93	350,223,908.95	5,172,743,757.18	6.77%
LAND BANK OF THE PHILIPPINES	9,217,532,081.02	7,374,025,664.82	12,738,957,884.59	5,364,932,219.77	74,177,444,655.41	7.23%
UNION BANK OF THE PHILIPPINES	9,281,609,151.50	7,425,287,321.20	10,474,098,474.06	3,048,811,152.86	40,225,927,291.79	7.58%
CHINA BANKING CORPORATION	4,718,030,496.01	3,774,424,396.81	7,000,428,960.83	3,226,004,564.02	41,068,572,860.31	7.86%
BANK OF CHINA LIMITED-MANILA BRANCH	0.00	0.00	59,231,492.72	59,231,492.72	731,115,002.59	8.10%
ANZ BANKING GROUP LTD	23,339,114.85	18,671,291.88	264,857,945.34	246,186,653.46	3,033,597,583.83	8.12%
PHILIPPINE SAVINGS BANK	3,746,195,124.94	2,996,956,099.95	4,440,018,970.72	1,443,062,870.77	16,615,065,526.25	8.69%
DEUTSCHE BANK AG	0.00	0.00	194,961,088.56	194,961,088.56	2,210,540,126.62	8.82%
BDO UNIBANK INC	22,361,024,360.61	17,888,819,488.49	32,342,917,673.23	14,454,098,184.74	161,661,538,506.02	8.94%
BANGKOK BANK PUBLIC CO LTD	5,034,155.55	4,027,324.44	127,364,870.00	123,337,545.56	1,160,083,398.87	10.63%
KOREA EXCHANGE BANK	41,519,190.16	33,215,352.13	98,698,140.37	65,482,788.24	594,713,419.54	11.01%
STANDARD CHARTERED BANK	1,073,584,225.34	858,867,380.27	1,283,549,562.49	424,682,182.22	2,965,820,722.31	14.32%
THE BANK OF TOKYO-MITSUBISHI UFJ LTD	0.00	0.00	354,910,030.46	354,910,030.46	2,202,443,873.38	16.11%
UNITED OVERSEAS BANK PHILIPPINES	664,875,061.65	531,900,049.32	666,156,502.81	134,256,453.49	653,858,984.70	20.53%
MIZUHO BANK LTD - MANILA BRANCH	0.00	0.00	294,448,818.10	294,448,818.10	1,418,575,146.28	20.76%
MEGA INTERNATIONAL COMMERCIAL BANK CO LTD	0.00	0.00	206,566,716.20	206,566,716.20	716,962,280.46	28.81%
CITIBANK SAVINGS INC	2,725,163,565.91	2,180,130,852.73	2,711,660,215.09	531,529,362.36	1,574,388,139.34	33.76%
CITIBANK, N.A.	790,687,359.90	632,549,887.92	5,425,724,956.57	4,793,175,068.65	7,472,192,198.87	64.15%
Grand Total	129,096,349,834.78	103,277,079,867.82	150,390,056,934.60	47,112,977,066.78	1,010,513,696,062.85	4.66%

Out of the 12 banks highlighted in yellow, 9 banks have been regularly listed as one of the "The Top Distressed Philippine Banks as of September 30, 2013".  One of the banks on this list, Silangan Savings & Loan Bank Inc. failed very recently - last January 9, 2014.  (See "A Short Analysis of Recent Bank Failures since the Failure of Banco Filipino - Updated").  Another bank, Planters Development Bank, faces a shortfall of 48% of its stated stockholders equity of Php 3.133 billion if it were to increase its loan loss provisions to meet a minimum NPL Coverage Ratio of 80%.  Planters was recently acquired by China Banking Corporation, a much healthier bank, for Php 1.863 billion, which represents a 40% discount to Planters stated book value of Php 3.133 billion as of September 30, 2013 or a 41% premium to their actual book value of Php 1.323 billion (after subtracting for unbooked losses/deferred charges).

Another bank on this list, The Real Bank, will have to be recapitalized several times over to meet minimum loan loss provisions on its Gross NPLs.