Overstated Capital of Philippine Banks as of June 30, 2016

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 June 30, 2016:

1. United Coconut Planters Bank (Deferred Charges of 22.89% of SE)
2. Bataan Development Bank (Deferred Charges of 11.71% of SE)
3. China Bank Savings Inc (Deferred Charges of 11.35% of SE)
4. City Savings Bank (Deferred Charges of 6.07% of SE)
5. Bank of Commerce (Deferred Charges of 1.04% of SE)
6. Wealth Development Bank Corporation (Deferred Charges of 0.59% of SE)
7. Card SME Bank, Inc. (Deferred Charges of 0.36% of SE)

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

1. United Coconut Planters Bank (Distressed Ratio of 429.17%)
2. China Bank Savings Inc  (Distressed Ratio of 166.75%)
3. Bataan Development Bank (Distressed Ratio of 128.57)

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



Retained Earnings

Only five banks have sufficient Retained Earnings (RE) to absorb their unbooked losses as of June 30, 2016:

1. United Coconut Planters Bank (85.08% of RE)
2. Bataan Development Bank (66.26% of RE)
3. City Savings Bank (7.86% of RE)
4. Wealth Development Bank Corporation (4.96% of RE)
5. CARD SME Bank (2.24% of RE)

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

1. Bank of Commerce (Retained Earnings of - Php 4.326 billion vs. Deferred Charges of Php 167.247 million).
2. China Bank Savings Inc (Retained Earnings of - PhP 2.295 billion vs. Deferred Charges of Php 800.410 million)

Philippine Banking System
Deferred Charges Not Yet Written Down
Impact on Stockholder's Equity
In Php
June 30, 2016
Bank	Type of Bank	Deferred Charges	Unbooked Losses	Total Deferred Charges	Stockholder's Equity	Adjusted SE	Impact on SE
UNITED COCONUT PLANTERS BANK	U/KB	4,690,746,199.58	0.00	4,690,746,199.58	20,492,870,335.85	15,802,124,136.27	22.89%
BATAAN DEVELOPMENT BANK	Thrift	8,944,674.49	0.00	8,944,674.49	76,414,810.12	67,470,135.63	11.71%
CHINA BANK SAVINGS INC	Thrift	800,409,840.88	0.00	800,409,840.88	7,054,819,000.64	6,254,409,159.76	11.35%
CITY SAVINGS BANK	Thrift	585,495,260.07	0.00	585,495,260.07	9,647,530,174.49	9,062,034,914.42	6.07%
BANK OF COMMERCE	U/KB	167,247,052.94	0.00	167,247,052.94	16,120,363,636.35	15,953,116,583.41	1.04%
WEALTH DEVELOPMENT BANK CORPORATION	Thrift	2,718,615.84	0.00	2,718,615.84	462,431,438.60	459,712,822.76	0.59%
CARD SME BANK INC A THRIFT BANK	Thrift	2,243,738.96	0.00	2,243,738.96	625,967,923.15	623,724,184.19	0.36%
Grand Total		6,257,805,382.76	0.00	6,257,805,382.76	54,480,397,319.20	48,222,591,936.44	11.49%
Philippine Banking System
Deferred Charges Not Yet Written Down
Impact on Retained Earnings
In Php
June 30, 2016
Bank	Total Deferred Charges	RE	Adjusted RE	Impact on RE
UNITED COCONUT PLANTERS BANK	4,690,746,199.58	5,513,157,899.68	822,411,700.10	85.08%
BATAAN DEVELOPMENT BANK	10,075,723.35	15,206,883.41	5,131,160.06	66.26%
CITY SAVINGS BANK	585,495,260.07	7,451,333,917.84	6,951,333,917.84	7.86%
WEALTH DEVELOPMENT BANK CORPORATION	2,718,615.84	54,854,483.82	52,135,867.98	4.96%
CARD SME BANK INC A THRIFT BANK	2,243,738.96	100,367,414.66	155,472,000.38	2.24%
BANK OF COMMERCE	167,247,052.94	-4,325,785,690.32	-4,493,032,743.26	-3.87%
CHINA BANK SAVINGS INC	800,409,840.88	-2,295,482,413.80	-3,095,892,254.68	-34.87%
Grand Total	6,258,936,431.62	6,513,652,495.29	397,559,648.42	96.09%

The Capital Adequacy Ratio of Philippine Banks - June 30, 2016

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

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

Tier 1 Capital

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


Tier 2 Capital

Tier 2 Capital is supplementary capital.  It measures the ability of a bank to absorb losses in the event of a winding up and so it provides a lesser degree of protection to depositors.
Common Equity Tier 1 Ratio

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

"...excludes any preferred shares or non-controlling interests when determining the calculation. This differs from the Tier 1 capital ratio which is based on the sum of its equity capital and disclosed reserves, and sometimes non-redeemable, non-cumulative preferred stock."

"...Regulators use the Tier 1 common capital ratio to grade a firm's capital adequacy as one of the following rankings: Well-Capitalized, Adequately Capitalized, Undercapitalized, Significantly Undercapitalized, and Critically Undercapitalized."

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

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

Undercapitalized: Common Equity Tier 1 Ratio below 4%.

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

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

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

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


Risk Weighted Assets

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

More information about this can be found here.

Minimum Capital Requirements

International Guidelines

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

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

For more information on Basel III, read this.

BSP Guidelines

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

"Banks must now meet specific minimum thresholds for so-called Common Equity Tier 1 (CET1) capital and Tier 1 (T1) capital in addition to the Capital Adequacy Ratio (CAR). These regulatory thresholds effectively move banks worldwide to rely more on core capital instruments like CET1 and T1 issues. This is in lieu of hybrid instruments which did not fare well in the latest global crisis as far as absorbing losses. The ability to absorb losses is central to Basel III.

The BSP maintained the minimum Capital Adequacy Ratio (CAR) at 10.0 percent. In addition to CAR, the new framework sets a CET1 ratio of at least 6.0 percent and the Tier I capital ratio is at a minimum of 7.5 percent. 

The new guidelines also introduce a capital conservation buffer of 2.5 percent which shall be made up of CET1 capital. In addition, banks which issued capital instruments from 2011 will be allowed to count these instruments as Basel III-eligible until end-2015

Moreover, banks that are considered by the BSP as "too big to fail" (domestically systemically important banks) will have minimum common equity Tier 1 (CET1) Ratios that are higher by 1.5% to 3.5% higher than the existing minimum of 6.00% and the capital conservation buffer of 2.5%.

Under these guidelines, several Philippine Banks currently do not meet these guidelines as of June 30, 2016.  The banks that fail to meet BSP's minimum capital requirements are as follows:

TOTAL CAR

1. The Palawan Bank Inc (Total CAR of 8.85)
2. Luzon Development Bank (Total CAR of 9.29)
3. Wealth Development Bank Corporation (Total CAR of 9.58)

TIER ONE CAR

Eight banks reported Tier One CAR of 0.00 as of June 30, 2016.  Of those that did report Tier One CAR greater than 0.00, eight have less than the BSP-recommended Tier One CARs of 10.00.  These banks are: 

1. CARD SME Bank Inc (Tier One CAR of 4.72)
2. Luzon Development Bank (Tier One CAR of 8.63)
3. Wealth Development Bank Corporation (Tier One CAR of 8.83)
4. Mizuho Bank Ltd - Manila Branch (Tier One CAR of 9.07)
5. Sterling Bank of Asia Inc (Tier One CAR of 9.20)
6. China Bank Savings Inc (Tier One CAR of 9.24)
7. The Palawan Bank Inc (Tier One CAR of 9.60)
8. Philippine Postal Savings Bank Inc (9.82)

COMMON EQUITY TIER ONE CAR

As stated above, the BSP's reporting guidelines on the Common Equity Tier One CAR (CET1) only took effect as of January 1, 2014.  Banks only started reporting this ratio in their Published Statements of Condition for June 30, 2014.  Fifty-five banks reported their CET1 Ratio as 0.00 for June 30, 2016.

However, those banks that did report a CET1 Ratio other than 0.00, two banks reported CET1 Ratios below BSP's recommended ratio.  They are as follows:

1. Mizuho Bank Ltd (CET1 Ratio of 9.07)
2. China Bank Savings Inc (CET1 Ratio of 9.24)

The Total CAR, Tier 1 CAR, and Common Equity Tier 1 CAR of Philippine Banks as of June 30, 2016 is as follows:(Banks that do not meet BSP's minimum capital requirements are highlighted in yellow):

Philippine Banking System
TOTAL CAR
June 30, 2016
Bank	Type of Bank	Total CAR
THE PALAWAN BANK (PALAWAN DB) INC	Thrift	8.85
LUZON DEVELOPMENT BANK	Thrift	9.29
WEALTH DEVELOPMENT BANK CORPORATION	Thrift	9.58
MIZUHO BANK LTD - MANILA BRANCH	U/KB	10.02
UNITED COCONUT PLANTERS BANK	U/KB	10.08
CHINA BANK SAVINGS INC	Thrift	10.29
PHIL POSTAL SAVINGS BANK INC	Thrift	10.36
ENTERPRISE BANK INC (A THRIFT BANK)	Thrift	10.45
OPPORTUNITY KAUSWAGAN BANK INC (A MICROFINANCE THRIFT BANK)	Thrift	10.88
EQUICOM SAVINGS BANK INC	Thrift	11.10
BDO UNIBANK INC	U/KB	11.98
LAND BANK OF THE  PHILIPPINES	U/KB	11.98
BANK OF THE PHIL ISLANDS	U/KB	12.62
PHIL NATIONAL BANK	U/KB	12.73
THE BNK OF TOKYO-MITSUBISHI UFJ LTD	U/KB	12.80
RCBC SAVINGS BANK INC	Thrift	13.17
STERLING BANK OF ASIA INC (A SAVINGS BANK)	Thrift	13.26
BPI FAMILY SAVINGS BANK INC	Thrift	13.94
EAST WEST BANKING CORP	U/KB	14.12
VILLAGE BANK INC (A THRIFT BANK)	Thrift	14.23
CITY SAVINGS BANK INC	Thrift	14.47
CHINA BANKING CORP	U/KB	14.69
PHIL SAVINGS BANK	Thrift	14.77
PHIL BANK OF COMMUNICATIONS	U/KB	14.86
STANDARD CHARTERED BANK	U/KB	15.17
MAYBANK PHILIPPINES INC	U/KB	15.52
ANZ BANKING GROUP LTD	U/KB	15.61
PENBANK INC (A PDB) (FORMERLY: PENINSULA RB INC)	Thrift	15.62
BANK OF CHINA LIMITED	U/KB	15.70
MALAYAN BANK SAVINGS AND MORT BANK INC	Thrift	15.93
UNION BANK OF THE PHILS	U/KB	16.32
METROPOLITAN BANK & TRUST CO	U/KB	16.57
FARMERS SAVINGS & LOAN BANK INC	Thrift	16.83
DEVELOPMENT BANK OF THE PHIL	U/KB	16.87
PHILIPPINE VETERANS BANK	U/KB	16.94
PRODUCERS SAVINGS BANK CORPORATION	Thrift	17.02
CITYSTATE SAVINGS BANK INC	Thrift	17.05
RIZAL COMM'L BANKING CORP	U/KB	17.08
UCPB SAVINGS BANK	Thrift	17.39
WORLD PARTNERS BANK (A THRIFT BANK)	Thrift	17.60
BATAAN DEVELOPMENT BANK	Thrift	17.62
CITIBANK, N.A.	U/KB	17.62
HONGKONG & SHANGHAI BANKING CORP	U/KB	17.86
HIYAS BANKING CORPORATION	Thrift	17.97
PHILIPPINE RESOURCES SAVINGS BANKING CORPORATION (PR SAVINGS	Thrift	18.03
MEGA INT'L COMM'L BANK CO LTD	U/KB	18.27
ASIA UNITED BANK CORPORATION	U/KB	18.33
1ST VALLEY BANK INC A DEVELOPMENT BANK	Thrift	18.51
DEUTSCHE BANK AG	U/KB	19.22
BANK OF MAKATI (A SAVINGS BANK) INC	Thrift	19.36
BANK OF COMMERCE	U/KB	19.64
PHILIPPINE BUSINESS BANK INC A SAVINGS BANK	Thrift	20.38
SECURITY BANK CORP	U/KB	20.46
BDO PRIVATE BANK, INC.	U/KB	21.57
METRO CEBU PUBLIC SAVINGS BANK	Thrift	21.67
CTBC BANK (PHILIPPINES) CORP	U/KB	21.77
CARD SME BANK INC A THRIFT BANK	Thrift	21.91
MBANK PHILIPPINES (A THRIFT BANK) INC	Thrift	22.75
DUMAGUETE CITY DEV BANK INC	Thrift	24.45
LIFE SAVINGS BANK INC	Thrift	25.04
INTER-ASIA DEVELOPMENT BANK	Thrift	25.60
JP MORGAN CHASE BANK NATIONAL ASSN.	U/KB	26.04
KEB HANA BANK - MANILA BRANCH	U/KB	26.28
FIRST CONSOLIDATED BANK INC (A PDB)	Thrift	26.32
BUSINESS AND CONSUMERS BANK (A DB)	Thrift	28.04
BANGKOK BANK PUBLIC CO LTD	U/KB	29.80
LEGAZPI SAVINGS BANK INC	Thrift	29.89
HSBC SAVINGS BANK PHILIPPINES	Thrift	30.33
TOWER DEVELOPMENT BANK	Thrift	30.74
BPI DIRECT SAVINGS BANK INC	Thrift	30.78
UNIVERSITY SAVINGS BANK INC	Thrift	31.10
SUN SAVINGS BANK INC	Thrift	31.11
PAMPANGA DEVELOPMENT BANK	Thrift	32.44
MARITIME SAVINGS BANK CORPORATION	Thrift	33.39
ROBINSONS BANK CORPORATION	U/KB	33.41
LEMERY SAVINGS & LOAN BANK, INC.	Thrift	34.27
CORDILLERA SAVINGS BANK INC	Thrift	36.68
QUEEN CITY DEVELOPMENT BANK INC OR QUEENBANK A THRIFT BANK	Thrift	38.32
MALASIQUI PROGRESSIVE SLB, INC	Thrift	40.01
NORTHPOINT DEV'T BANK INC	Thrift	40.38
DUNGGANON BANK (A MICROFINANCE THRIFT BANK) INC	Thrift	45.03
PHIL TRUST COMPANY	U/KB	45.19
PNB SAVINGS BANK	Thrift	46.31
BANK OF AMERICA N.A.	U/KB	47.30
PACIFIC ACE SAVINGS BANK INC	Thrift	51.49
PHIL STAR DEVELOPMENT BANK INC	Thrift	51.82
INDUSTRIAL BANK OF KOREA MANILA BRANCH	U/KB	52.74
OPTIMUM DEVELOPMENT BANK INC	Thrift	54.58
QUEZON COCONUT BANK INC (A THRIFT BANK)	Thrift	56.48
BANK ONE SAVINGS AND TRUST CORP.	Thrift	58.64
SAMPAGUITA SAVINGS BANK INC	Thrift	63.71
ING BANK N.V.	U/KB	71.35
MERCHANTS SAVINGS & LOAN ASSN INC	Thrift	74.30
TONGYANG SAVINGS BANK INC	Thrift	76.31
CENTURY SAVINGS BANK CORPORATION	Thrift	80.67
AL-AMANAH ISLAMIC INVESTMENT BANK OF THE PHILS	U/KB	97.00
CATHAY UNITED BANK CO LTD - MANILA BRANCH	U/KB	110.21
SHINHAN BANK - MANILA BRANCH	U/KB	132.80
ISLA BANK(A THRIFT BANK) INC	Thrift	176.13
UNITED OVERSEAS BANK LIMITED MANILA BRANCH	U/KB	265.19
SUMITOMO MITSUI BANKING CORPORATION - MANILA BRANCH	U/KB	301.17
BATAAN SAVINGS AND LOAN BANK	Thrift	NA
Philippine Banking System
Tier One CAR
June 30, 2016
Bank	Type of Bank	Tier One CAR
CARD SME BANK INC A THRIFT BANK	Thrift	4.72
LUZON DEVELOPMENT BANK	Thrift	8.63
WEALTH DEVELOPMENT BANK CORPORATION	Thrift	8.83
MIZUHO BANK LTD - MANILA BRANCH	U/KB	9.07
STERLING BANK OF ASIA INC (A SAVINGS BANK)	Thrift	9.20
CHINA BANK SAVINGS INC	Thrift	9.24
THE PALAWAN BANK (PALAWAN DB) INC	Thrift	9.60
PHIL POSTAL SAVINGS BANK INC	Thrift	9.82
UNITED COCONUT PLANTERS BANK	U/KB	10.08
BDO UNIBANK INC	U/KB	10.36
EAST WEST BANKING CORP	U/KB	10.91
LAND BANK OF THE  PHILIPPINES	U/KB	11.09
PHIL BANK OF COMMUNICATIONS	U/KB	11.67
PHIL SAVINGS BANK	Thrift	11.72
BANK OF THE PHIL ISLANDS	U/KB	11.75
PHIL NATIONAL BANK	U/KB	11.90
PHILIPPINE RESOURCES SAVINGS BANKING CORPORATION (PR SAVINGS	Thrift	12.01
THE BNK OF TOKYO-MITSUBISHI UFJ LTD	U/KB	12.07
RCBC SAVINGS BANK INC	Thrift	12.45
DEVELOPMENT BANK OF THE PHIL	U/KB	12.48
UNION BANK OF THE PHILS	U/KB	12.79
BPI FAMILY SAVINGS BANK INC	Thrift	13.08
RIZAL COMM'L BANKING CORP	U/KB	13.12
METROPOLITAN BANK & TRUST CO	U/KB	13.25
CITY SAVINGS BANK INC	Thrift	13.65
CHINA BANKING CORP	U/KB	13.77
VILLAGE BANK INC (A THRIFT BANK)	Thrift	13.81
ASIA UNITED BANK CORPORATION	U/KB	13.89
MAYBANK PHILIPPINES INC	U/KB	14.47
STANDARD CHARTERED BANK	U/KB	14.55
PENBANK INC (A PDB) (FORMERLY: PENINSULA RB INC)	Thrift	14.92
BANK OF CHINA LIMITED	U/KB	15.08
ANZ BANKING GROUP LTD	U/KB	15.13
MALAYAN BANK SAVINGS AND MORT BANK INC	Thrift	15.41
UNIVERSITY SAVINGS BANK INC	Thrift	15.55
PRODUCERS SAVINGS BANK CORPORATION	Thrift	16.46
CITYSTATE SAVINGS BANK INC	Thrift	16.48
PHILIPPINE VETERANS BANK	U/KB	16.53
UCPB SAVINGS BANK	Thrift	16.66
CITIBANK, N.A.	U/KB	16.93
HONGKONG & SHANGHAI BANKING CORP	U/KB	17.25
WORLD PARTNERS BANK (A THRIFT BANK)	Thrift	17.25
MEGA INT'L COMM'L BANK CO LTD	U/KB	17.32
HIYAS BANKING CORPORATION	Thrift	17.64
SECURITY BANK CORP	U/KB	17.84
FARMERS SAVINGS & LOAN BANK INC	Thrift	18.16
DEUTSCHE BANK AG	U/KB	18.75
BANK OF MAKATI (A SAVINGS BANK) INC	Thrift	18.78
BANK OF COMMERCE	U/KB	19.13
BATAAN DEVELOPMENT BANK	Thrift	19.47
PHILIPPINE BUSINESS BANK INC A SAVINGS BANK	Thrift	19.53
BDO PRIVATE BANK, INC.	U/KB	20.96
CTBC BANK (PHILIPPINES) CORP	U/KB	21.08
METRO CEBU PUBLIC SAVINGS BANK	Thrift	21.32
MBANK PHILIPPINES (A THRIFT BANK) INC	Thrift	22.75
DUMAGUETE CITY DEV BANK INC	Thrift	24.09
LIFE SAVINGS BANK INC	Thrift	24.89
FIRST CONSOLIDATED BANK INC (A PDB)	Thrift	25.46
JP MORGAN CHASE BANK NATIONAL ASSN.	U/KB	25.87
KEB HANA BANK - MANILA BRANCH	U/KB	25.98
BANGKOK BANK PUBLIC CO LTD	U/KB	28.83
LEGAZPI SAVINGS BANK INC	Thrift	29.12
HSBC SAVINGS BANK PHILIPPINES	Thrift	29.66
BPI DIRECT SAVINGS BANK INC	Thrift	30.00
SUN SAVINGS BANK INC	Thrift	30.06
ROBINSONS BANK CORPORATION	U/KB	32.65
LEMERY SAVINGS & LOAN BANK, INC.	Thrift	34.03
CORDILLERA SAVINGS BANK INC	Thrift	36.13
QUEEN CITY DEVELOPMENT BANK INC OR QUEENBANK A THRIFT BANK	Thrift	37.94
MALASIQUI PROGRESSIVE SLB, INC	Thrift	39.83
NORTHPOINT DEV'T BANK INC	Thrift	40.20
OPPORTUNITY KAUSWAGAN BANK INC (A MICROFINANCE THRIFT BANK)	Thrift	40.22
DUNGGANON BANK (A MICROFINANCE THRIFT BANK) INC	Thrift	44.62
PHIL TRUST COMPANY	U/KB	44.86
PNB SAVINGS BANK	Thrift	45.39
BANK OF AMERICA N.A.	U/KB	46.69
PACIFIC ACE SAVINGS BANK INC	Thrift	51.46
PHIL STAR DEVELOPMENT BANK INC	Thrift	51.67
INDUSTRIAL BANK OF KOREA MANILA BRANCH	U/KB	52.74
BANK ONE SAVINGS AND TRUST CORP.	Thrift	58.01
QUEZON COCONUT BANK INC (A THRIFT BANK)	Thrift	58.16
SAMPAGUITA SAVINGS BANK INC	Thrift	63.67
ING BANK N.V.	U/KB	70.96
MERCHANTS SAVINGS & LOAN ASSN INC	Thrift	73.56
TONGYANG SAVINGS BANK INC	Thrift	76.31
CENTURY SAVINGS BANK CORPORATION	Thrift	79.62
AL-AMANAH ISLAMIC INVESTMENT BANK OF THE PHILS	U/KB	96.54
CATHAY UNITED BANK CO LTD - MANILA BRANCH	U/KB	110.21
TOWER DEVELOPMENT BANK	Thrift	119.56
PAMPANGA DEVELOPMENT BANK	Thrift	128.84
SHINHAN BANK - MANILA BRANCH	U/KB	132.64
ISLA BANK(A THRIFT BANK) INC	Thrift	175.84
UNITED OVERSEAS BANK LIMITED MANILA BRANCH	U/KB	265.49
SUMITOMO MITSUI BANKING CORPORATION - MANILA BRANCH	U/KB	300.06
1ST VALLEY BANK INC A DEVELOPMENT BANK	Thrift	NA
BATAAN SAVINGS AND LOAN BANK	Thrift	NA
BUSINESS AND CONSUMERS BANK (A DB)	Thrift	NA
ENTERPRISE BANK INC (A THRIFT BANK)	Thrift	NA
EQUICOM SAVINGS BANK INC	Thrift	NA
INTER-ASIA DEVELOPMENT BANK	Thrift	NA
MARITIME SAVINGS BANK CORPORATION	Thrift	NA
OPTIMUM DEVELOPMENT BANK INC	Thrift	NA
Philippine Banking System
Common Tier 1 Ratio
June 30, 2016
Bank	Type of Bank	Common Tier 1 Ratio
MIZUHO BANK LTD - MANILA BRANCH	U/KB	9.07
CHINA BANK SAVINGS INC	Thrift	9.24
BDO UNIBANK INC	U/KB	10.02
EAST WEST BANKING CORP	U/KB	10.91
LAND BANK OF THE  PHILIPPINES	U/KB	11.09
PHIL BANK OF COMMUNICATIONS	U/KB	11.67
PHIL SAVINGS BANK	Thrift	11.72
BANK OF THE PHIL ISLANDS	U/KB	11.75
PHIL NATIONAL BANK	U/KB	11.90
THE BNK OF TOKYO-MITSUBISHI UFJ LTD	U/KB	12.07
RCBC SAVINGS BANK INC	Thrift	12.45
DEVELOPMENT BANK OF THE PHIL	U/KB	12.48
UNION BANK OF THE PHILS	U/KB	12.79
BPI FAMILY SAVINGS BANK INC	Thrift	13.08
RIZAL COMM'L BANKING CORP	U/KB	13.12
METROPOLITAN BANK & TRUST CO	U/KB	13.25
CITY SAVINGS BANK INC	Thrift	13.65
CHINA BANKING CORP	U/KB	13.77
ASIA UNITED BANK CORPORATION	U/KB	13.89
MAYBANK PHILIPPINES INC	U/KB	14.47
STANDARD CHARTERED BANK	U/KB	14.55
PHILIPPINE VETERANS BANK	U/KB	14.86
ANZ BANKING GROUP LTD	U/KB	15.13
BDO PRIVATE BANK, INC.	U/KB	16.80
CITIBANK, N.A.	U/KB	16.93
HONGKONG & SHANGHAI BANKING CORP	U/KB	17.25
MEGA INT'L COMM'L BANK CO LTD	U/KB	17.32
SECURITY BANK CORP	U/KB	17.84
DEUTSCHE BANK AG	U/KB	18.75
BANK OF COMMERCE	U/KB	19.13
CTBC BANK (PHILIPPINES) CORP	U/KB	21.08
JP MORGAN CHASE BANK NATIONAL ASSN.	U/KB	25.87
KEB HANA BANK - MANILA BRANCH	U/KB	25.98
BANGKOK BANK PUBLIC CO LTD	U/KB	28.83
LEGAZPI SAVINGS BANK INC	Thrift	29.12
HSBC SAVINGS BANK PHILIPPINES	Thrift	29.66
BPI DIRECT SAVINGS BANK INC	Thrift	30.00
ROBINSONS BANK CORPORATION	U/KB	32.65
PHIL TRUST COMPANY	U/KB	44.86
PNB SAVINGS BANK	Thrift	45.38
INDUSTRIAL BANK OF KOREA MANILA BRANCH	U/KB	52.74
ING BANK N.V.	U/KB	70.96
MERCHANTS SAVINGS & LOAN ASSN INC	Thrift	73.56
AL-AMANAH ISLAMIC INVESTMENT BANK OF THE PHILS	U/KB	96.54
CATHAY UNITED BANK CO LTD - MANILA BRANCH	U/KB	110.21
SHINHAN BANK - MANILA BRANCH	U/KB	132.64
SUMITOMO MITSUI BANKING CORPORATION - MANILA BRANCH	U/KB	300.06
1ST VALLEY BANK INC A DEVELOPMENT BANK	Thrift	NA
BANK OF AMERICA N.A.	U/KB	NA
BANK OF CHINA LIMITED	U/KB	NA
BANK OF MAKATI (A SAVINGS BANK) INC	Thrift	NA
BANK ONE SAVINGS AND TRUST CORP.	Thrift	NA
BATAAN DEVELOPMENT BANK	Thrift	NA
BATAAN SAVINGS AND LOAN BANK	Thrift	NA
BUSINESS AND CONSUMERS BANK (A DB)	Thrift	NA
CARD SME BANK INC A THRIFT BANK	Thrift	NA
CENTURY SAVINGS BANK CORPORATION	Thrift	NA
CITYSTATE SAVINGS BANK INC	Thrift	NA
CORDILLERA SAVINGS BANK INC	Thrift	NA
DUMAGUETE CITY DEV BANK INC	Thrift	NA
DUNGGANON BANK (A MICROFINANCE THRIFT BANK) INC	Thrift	NA
ENTERPRISE BANK INC (A THRIFT BANK)	Thrift	NA
EQUICOM SAVINGS BANK INC	Thrift	NA
FARMERS SAVINGS & LOAN BANK INC	Thrift	NA
FIRST CONSOLIDATED BANK INC (A PDB)	Thrift	NA
HIYAS BANKING CORPORATION	Thrift	NA
INTER-ASIA DEVELOPMENT BANK	Thrift	NA
ISLA BANK(A THRIFT BANK) INC	Thrift	NA
LEMERY SAVINGS & LOAN BANK, INC.	Thrift	NA
LIFE SAVINGS BANK INC	Thrift	NA
LUZON DEVELOPMENT BANK	Thrift	NA
MALASIQUI PROGRESSIVE SLB, INC	Thrift	NA
MALAYAN BANK SAVINGS AND MORT BANK INC	Thrift	NA
MARITIME SAVINGS BANK CORPORATION	Thrift	NA
MBANK PHILIPPINES (A THRIFT BANK) INC	Thrift	NA
METRO CEBU PUBLIC SAVINGS BANK	Thrift	NA
NORTHPOINT DEV'T BANK INC	Thrift	NA
OPPORTUNITY KAUSWAGAN BANK INC (A MICROFINANCE THRIFT BANK)	Thrift	NA
OPTIMUM DEVELOPMENT BANK INC	Thrift	NA
PACIFIC ACE SAVINGS BANK INC	Thrift	NA
PAMPANGA DEVELOPMENT BANK	Thrift	NA
PENBANK INC (A PDB) (FORMERLY: PENINSULA RB INC)	Thrift	NA
PHIL POSTAL SAVINGS BANK INC	Thrift	NA
PHIL STAR DEVELOPMENT BANK INC	Thrift	NA
PHILIPPINE BUSINESS BANK INC A SAVINGS BANK	Thrift	NA
PHILIPPINE RESOURCES SAVINGS BANKING CORPORATION (PR SAVINGS	Thrift	NA
PRODUCERS SAVINGS BANK CORPORATION	Thrift	NA
QUEEN CITY DEVELOPMENT BANK INC OR QUEENBANK A THRIFT BANK	Thrift	NA
QUEZON COCONUT BANK INC (A THRIFT BANK)	Thrift	NA
SAMPAGUITA SAVINGS BANK INC	Thrift	NA
STERLING BANK OF ASIA INC (A SAVINGS BANK)	Thrift	NA
SUN SAVINGS BANK INC	Thrift	NA
THE PALAWAN BANK (PALAWAN DB) INC	Thrift	NA
TONGYANG SAVINGS BANK INC	Thrift	NA
TOWER DEVELOPMENT BANK	Thrift	NA
UCPB SAVINGS BANK	Thrift	NA
UNITED COCONUT PLANTERS BANK	U/KB	NA
UNITED OVERSEAS BANK LIMITED MANILA BRANCH	U/KB	NA
UNIVERSITY SAVINGS BANK INC	Thrift	NA
VILLAGE BANK INC (A THRIFT BANK)	Thrift	NA
WEALTH DEVELOPMENT BANK CORPORATION	Thrift	NA
WORLD PARTNERS BANK (A THRIFT BANK)	Thrift	NA

Source: www.bsp.gov.ph