A Simple Stress Test of Philippine Banks as of March 31, 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 197.13` billion or 9.48% of the PhP 2,078.44 billion in Stockholders Equity (SE) as of March 31, 2019.  So, writing off 50% of the Philippine Banks NPLs would reduce their aggregate stockholder's equity by a little less 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 March 31, 2019, "Classified Loans and Other Risky Assets" of the Philippine Banks amounted to PhP 429.22 billion or more than two times the size of the Philippine Banking System's NPLs of PhP 197.13 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 429.22 billion or 19.46% of the Php 2.20 trillion in Total Capital Cushion of Philippine Banks as of March 31, 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 19.46% 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 1.95% and a 50% write-off of classified loans will reduce the banking system's Total Capital Cushion by 9.73%.

Individual Banks

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

 

Philippine Banking System
Impact of 10% Classified Loan Loss Severities on Total Capital Cushion
March 31, 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 %)
SAVIOUR RURAL BANK INC	508,362,134.12	50,836,213.41	101,990,261.31	49.84%
RB OF CENTRAL PANGASINAN (BAYAMBANG) INC	836,410,095.47	83,641,009.55	188,221,991.32	44.44%
RB OF JAEN INC	245,748,458.38	24,574,845.84	59,232,407.94	41.49%
MOUNT MAKILING RURAL BANK INC	950,903,559.85	95,090,355.99	278,855,031.66	34.10%
INTER-ASIA DEVELOPMENT BANK	310,975,394.74	31,097,539.47	91,796,389.86	33.88%
COOP BANK OF CAGAYAN	349,123,099.49	34,912,309.95	105,322,538.61	33.15%
VILLAGE BANK INC (A RURAL BANK)	349,950,000.00	34,995,000.00	106,430,495.60	32.88%
RB OF BROOKE'S POINT (PALAWAN) INC	326,810,200.33	32,681,020.03	101,629,964.67	32.16%
BENGUET CENTER BANK INC A RB	203,887,898.01	20,388,789.80	64,294,387.22	31.71%
RB OF DULAG (LEYTE) INC	325,743,738.09	32,574,373.81	119,420,435.33	27.28%
COMMTY RB OF DAPITAN CITY INC	423,834,317.50	42,383,431.75	161,867,993.76	26.18%

 A 20% write-off of Classified Loans will severely impact the Total Capital Cushion of twenty-seven banks:

 

Philippine Banking System
Impact of 20% Classified Loan Loss Severities on Total Capital Cushion
March 31, 2019
	Classified Loans	20% Classified Loan Loss Severity	Total Capital Cushion	Impact of 20% Loss on Total Capital Cushion
Bank	(In Php)	(In Php)	(In Php)	(In %)
SAVIOUR RURAL BANK INC	508,362,134.12	101,672,426.82	101,990,261.31	99.69%
RB OF CENTRAL PANGASINAN (BAYAMBANG) INC	836,410,095.47	167,282,019.09	188,221,991.32	88.87%
RB OF JAEN INC	245,748,458.38	49,149,691.68	59,232,407.94	82.98%
MOUNT MAKILING RURAL BANK INC	950,903,559.85	190,180,711.97	278,855,031.66	68.20%
INTER-ASIA DEVELOPMENT BANK	310,975,394.74	62,195,078.95	91,796,389.86	67.75%
COOP BANK OF CAGAYAN	349,123,099.49	69,824,619.90	105,322,538.61	66.30%
VILLAGE BANK INC (A RURAL BANK)	349,950,000.00	69,990,000.00	106,430,495.60	65.76%
RB OF BROOKE'S POINT (PALAWAN) INC	326,810,200.33	65,362,040.07	101,629,964.67	64.31%
BENGUET CENTER BANK INC A RB	203,887,898.01	40,777,579.60	64,294,387.22	63.42%
RB OF DULAG (LEYTE) INC	325,743,738.09	65,148,747.62	119,420,435.33	54.55%
COMMTY RB OF DAPITAN CITY INC	423,834,317.50	84,766,863.50	161,867,993.76	52.37%
RB OF MIDSAYAP INC	220,163,699.12	44,032,739.82	102,966,058.13	42.76%
RB OF GENERAL TRIAS INC	261,603,795.02	52,320,759.00	139,393,957.69	37.53%
RB OF SAN MATEO(ISABELA) INC	256,426,832.43	51,285,366.49	137,514,038.45	37.29%
RB OF CARDONA (RIZAL) INC	263,607,057.40	52,721,411.48	142,508,947.39	37.00%
YUANTA SAVINGS BANK PHILIPPINES INC	1,820,245,950.34	364,049,190.07	992,257,234.14	36.69%
MALAYAN BANK SAVINGS AND MORT BANK INC	2,633,507,798.20	526,701,559.64	1,468,433,302.28	35.87%
TANAY RB INC	711,592,793.30	142,318,558.66	413,538,998.72	34.41%
BANK OF CHINA LIMITED-MANILA BRANCH	17,190,443,937.60	3,438,088,787.52	10,050,902,348.08	34.21%
PLANBANK "RB OF CANLUBANG PLANTERS INC"	261,072,015.73	52,214,403.15	154,425,067.15	33.81%
RB OF PILAR (BATAAN) INC	259,270,339.01	51,854,067.80	154,060,715.31	33.66%
RANG-AY BANK INC (A RURAL BANK)	891,533,375.17	178,306,675.03	538,461,371.90	33.11%
VALIANT BANK INC (A RURAL BANK)	388,771,681.35	77,754,336.27	235,494,542.72	33.02%
AMA RURAL BANK OF MANDALUYONG INC	1,355,753,000.00	271,150,600.00	891,921,691.67	30.40%
UNITED COCONUT PLANTERS BANK	12,480,467,391.08	2,496,093,478.22	8,381,446,388.01	29.78%
RB OF SAN LUIS (PAMPANGA) INC	166,312,754.71	33,262,550.94	115,428,386.16	28.82%
RB OF MARIA AURORA (AURORA) INC	329,928,490.23	65,985,698.05	238,887,658.99	27.62%
RB OF BAMBANG (NUEVA VIZCAYA) INC	191,102,472.70	38,220,494.54	138,569,500.13	27.58%
RCBC SAVINGS BANK INC	19,595,015,284.38	3,919,003,056.88	15,268,125,557.71	25.67%

  

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

 

Philippine Banking System
Impact of 30% Classified Loan Loss Severities on Total Capital Cushion
March 31, 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 %)
SAVIOUR RURAL BANK INC	508,362,134.12	152,508,640.24	101,990,261.31	149.53%
RB OF CENTRAL PANGASINAN (BAYAMBANG) INC	836,410,095.47	250,923,028.64	188,221,991.32	133.31%
RB OF JAEN INC	245,748,458.38	73,724,537.51	59,232,407.94	124.47%
MOUNT MAKILING RURAL BANK INC	950,903,559.85	285,271,067.96	278,855,031.66	102.30%
INTER-ASIA DEVELOPMENT BANK	310,975,394.74	93,292,618.42	91,796,389.86	101.63%
COOP BANK OF CAGAYAN	349,123,099.49	104,736,929.85	105,322,538.61	99.44%
VILLAGE BANK INC (A RURAL BANK)	349,950,000.00	104,985,000.00	106,430,495.60	98.64%
RB OF BROOKE'S POINT (PALAWAN) INC	326,810,200.33	98,043,060.10	101,629,964.67	96.47%
BENGUET CENTER BANK INC A RB	203,887,898.01	61,166,369.40	64,294,387.22	95.13%
RB OF DULAG (LEYTE) INC	325,743,738.09	97,723,121.43	119,420,435.33	81.83%
COMMTY RB OF DAPITAN CITY INC	423,834,317.50	127,150,295.25	161,867,993.76	78.55%
RB OF MIDSAYAP INC	220,163,699.12	66,049,109.74	102,966,058.13	64.15%
RB OF GENERAL TRIAS INC	261,603,795.02	78,481,138.51	139,393,957.69	56.30%
RB OF SAN MATEO(ISABELA) INC	256,426,832.43	76,928,049.73	137,514,038.45	55.94%
RB OF CARDONA (RIZAL) INC	263,607,057.40	79,082,117.22	142,508,947.39	55.49%
YUANTA SAVINGS BANK PHILIPPINES INC	1,820,245,950.34	546,073,785.10	992,257,234.14	55.03%
MALAYAN BANK SAVINGS AND MORT BANK INC	2,633,507,798.20	790,052,339.46	1,468,433,302.28	53.80%
TANAY RB INC	711,592,793.30	213,477,837.99	413,538,998.72	51.62%
BANK OF CHINA LIMITED-MANILA BRANCH	17,190,443,937.60	5,157,133,181.28	10,050,902,348.08	51.31%
PLANBANK "RB OF CANLUBANG PLANTERS INC"	261,072,015.73	78,321,604.72	154,425,067.15	50.72%
RB OF PILAR (BATAAN) INC	259,270,339.01	77,781,101.70	154,060,715.31	50.49%
RANG-AY BANK INC (A RURAL BANK)	891,533,375.17	267,460,012.55	538,461,371.90	49.67%
VALIANT BANK INC (A RURAL BANK)	388,771,681.35	116,631,504.41	235,494,542.72	49.53%
AMA RURAL BANK OF MANDALUYONG INC	1,355,753,000.00	406,725,900.00	891,921,691.67	45.60%
UNITED COCONUT PLANTERS BANK	12,480,467,391.08	3,744,140,217.32	8,381,446,388.01	44.67%
RB OF SAN LUIS (PAMPANGA) INC	166,312,754.71	49,893,826.41	115,428,386.16	43.22%
RB OF MARIA AURORA (AURORA) INC	329,928,490.23	98,978,547.07	238,887,658.99	41.43%
RB OF BAMBANG (NUEVA VIZCAYA) INC	191,102,472.70	57,330,741.81	138,569,500.13	41.37%
RCBC SAVINGS BANK INC	19,595,015,284.38	5,878,504,585.31	15,268,125,557.71	38.50%
COUNTRY BUILDERS BANK INC (A RURAL BANK)	431,463,894.41	129,439,168.32	368,615,858.88	35.11%
ILOCOS CONSOLIDATED COOPERATIVE BANK	281,586,877.24	84,476,063.17	277,471,591.70	30.44%
GATEWAY RURAL BANK INC	114,742,453.88	34,422,736.16	121,478,790.50	28.34%
GUAGUA RURAL BANK INC	1,071,735,536.80	321,520,661.04	1,146,712,356.53	28.04%
RB OF BAYOMBONG INC	171,444,064.32	51,433,219.30	184,378,189.97	27.90%
BOF INC (A RURAL BANK)	588,959,606.28	176,687,881.88	644,838,657.19	27.40%
EQUICOM SAVINGS BANK INC	878,429,475.19	263,528,842.56	990,367,470.10	26.61%
BATAAN DEVELOPMENT BANK	102,400,000.00	30,720,000.00	116,600,014.14	26.35%
UCPB SAVINGS BANK	2,911,217,229.07	873,365,168.72	3,408,915,226.74	25.62%

A 40% write-off of Classified Loans will totally wipe out the Total Capital Cushion of eleven banks and severely affect (reduce by 25% or more) the Total Capital Cushion of forty-three more banks:

 

Philippine Banking System
Impact of 40% Classified Loan Loss Severities on Total Capital Cushion
March 31, 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 %)
SAVIOUR RURAL BANK INC	508,362,134.12	203,344,853.65	101,990,261.31	199.38%
RB OF CENTRAL PANGASINAN (BAYAMBANG) INC	836,410,095.47	334,564,038.19	188,221,991.32	177.75%
RB OF JAEN INC	245,748,458.38	98,299,383.35	59,232,407.94	165.96%
MOUNT MAKILING RURAL BANK INC	950,903,559.85	380,361,423.94	278,855,031.66	136.40%
INTER-ASIA DEVELOPMENT BANK	310,975,394.74	124,390,157.90	91,796,389.86	135.51%
COOP BANK OF CAGAYAN	349,123,099.49	139,649,239.80	105,322,538.61	132.59%
VILLAGE BANK INC (A RURAL BANK)	349,950,000.00	139,980,000.00	106,430,495.60	131.52%
RB OF BROOKE'S POINT (PALAWAN) INC	326,810,200.33	130,724,080.13	101,629,964.67	128.63%
BENGUET CENTER BANK INC A RB	203,887,898.01	81,555,159.20	64,294,387.22	126.85%
RB OF DULAG (LEYTE) INC	325,743,738.09	130,297,495.24	119,420,435.33	109.11%
COMMTY RB OF DAPITAN CITY INC	423,834,317.50	169,533,727.00	161,867,993.76	104.74%
RB OF MIDSAYAP INC	220,163,699.12	88,065,479.65	102,966,058.13	85.53%
RB OF GENERAL TRIAS INC	261,603,795.02	104,641,518.01	139,393,957.69	75.07%
RB OF SAN MATEO(ISABELA) INC	256,426,832.43	102,570,732.97	137,514,038.45	74.59%
RB OF CARDONA (RIZAL) INC	263,607,057.40	105,442,822.96	142,508,947.39	73.99%
YUANTA SAVINGS BANK PHILIPPINES INC	1,820,245,950.34	728,098,380.14	992,257,234.14	73.38%
MALAYAN BANK SAVINGS AND MORT BANK INC	2,633,507,798.20	1,053,403,119.28	1,468,433,302.28	71.74%
TANAY RB INC	711,592,793.30	284,637,117.32	413,538,998.72	68.83%
BANK OF CHINA LIMITED-MANILA BRANCH	17,190,443,937.60	6,876,177,575.04	10,050,902,348.08	68.41%
PLANBANK "RB OF CANLUBANG PLANTERS INC"	261,072,015.73	104,428,806.29	154,425,067.15	67.62%
RB OF PILAR (BATAAN) INC	259,270,339.01	103,708,135.60	154,060,715.31	67.32%
RANG-AY BANK INC (A RURAL BANK)	891,533,375.17	356,613,350.07	538,461,371.90	66.23%
VALIANT BANK INC (A RURAL BANK)	388,771,681.35	155,508,672.54	235,494,542.72	66.03%
AMA RURAL BANK OF MANDALUYONG INC	1,355,753,000.00	542,301,200.00	891,921,691.67	60.80%
UNITED COCONUT PLANTERS BANK	12,480,467,391.08	4,992,186,956.43	8,381,446,388.01	59.56%
RB OF SAN LUIS (PAMPANGA) INC	166,312,754.71	66,525,101.88	115,428,386.16	57.63%
RB OF MARIA AURORA (AURORA) INC	329,928,490.23	131,971,396.09	238,887,658.99	55.24%
RB OF BAMBANG (NUEVA VIZCAYA) INC	191,102,472.70	76,440,989.08	138,569,500.13	55.16%
RCBC SAVINGS BANK INC	19,595,015,284.38	7,838,006,113.75	15,268,125,557.71	51.34%
COUNTRY BUILDERS BANK INC (A RURAL BANK)	431,463,894.41	172,585,557.76	368,615,858.88	46.82%
ILOCOS CONSOLIDATED COOPERATIVE BANK	281,586,877.24	112,634,750.90	277,471,591.70	40.59%
GATEWAY RURAL BANK INC	114,742,453.88	45,896,981.55	121,478,790.50	37.78%
GUAGUA RURAL BANK INC	1,071,735,536.80	428,694,214.72	1,146,712,356.53	37.38%
RB OF BAYOMBONG INC	171,444,064.32	68,577,625.73	184,378,189.97	37.19%
BOF INC (A RURAL BANK)	588,959,606.28	235,583,842.51	644,838,657.19	36.53%
EQUICOM SAVINGS BANK INC	878,429,475.19	351,371,790.08	990,367,470.10	35.48%
BATAAN DEVELOPMENT BANK	102,400,000.00	40,960,000.00	116,600,014.14	35.13%
UCPB SAVINGS BANK	2,911,217,229.07	1,164,486,891.63	3,408,915,226.74	34.16%
RB OF MAGDALENA (LAGUNA) INC	106,568,951.33	42,627,580.53	128,192,643.52	33.25%
RBG IMPERIAL BANK INC(A RURAL BANK)	75,173,167.73	30,069,267.09	92,643,136.85	32.46%
COMMON WEALTH RURAL BANK INC	104,729,465.19	41,891,786.08	133,731,740.14	31.33%
RB OF MIAGAO (ILOILO) INC	84,744,984.92	33,897,993.97	108,272,092.04	31.31%
BANGKO MABUHAY (A RURAL BANK) INC	268,170,723.71	107,268,289.48	343,335,053.72	31.24%
SUGBUANON RB INC	86,037,427.60	34,414,971.04	113,239,621.31	30.39%
ASIA UNITED BANK CORPORATION	23,221,270,110.76	9,288,508,044.30	31,115,740,576.17	29.85%
GM BANK OF LUZON INC (A RURAL BANK)	364,441,470.08	145,776,588.03	505,251,055.09	28.85%
PEOPLES BANK OF CARAGA INC (A RURAL BANK)	303,768,304.08	121,507,321.63	421,692,152.80	28.81%
PHIL BANK OF COMMUNICATIONS	9,182,681,270.78	3,673,072,508.31	12,773,089,763.85	28.76%
PHIL STAR DEVELOPMENT BANK INC	75,742,055.47	30,296,822.19	109,439,031.42	27.68%
CHINA BANK SAVINGS INC	8,068,068,347.71	3,227,227,339.08	11,700,972,862.23	27.58%
PBCOM RURAL BANK INC	631,246,328.71	252,498,531.48	929,617,827.55	27.16%
LEGAZPI SAVINGS BANK INC	543,831,000.00	217,532,400.00	821,646,648.86	26.48%
RB OF SAN PASCUAL(OBANDO BULACAN)INC	49,753,382.79	19,901,353.12	78,286,430.96	25.42%
NEW RB OF SAN LEONARDO(N.E.) INC	161,153,044.79	64,461,217.92	256,621,413.00	25.12%

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

 

Philippine Banking System
Impact of 50% Classified Loan Loss Severities on Total Capital Cushion
March 31, 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 %)
SAVIOUR RURAL BANK INC	508,362,134.12	254,181,067.06	101,990,261.31	249.22%
RB OF CENTRAL PANGASINAN (BAYAMBANG) INC	836,410,095.47	418,205,047.74	188,221,991.32	222.19%
RB OF JAEN INC	245,748,458.38	122,874,229.19	59,232,407.94	207.44%
MOUNT MAKILING RURAL BANK INC	950,903,559.85	475,451,779.93	278,855,031.66	170.50%
INTER-ASIA DEVELOPMENT BANK	310,975,394.74	155,487,697.37	91,796,389.86	169.38%
COOP BANK OF CAGAYAN	349,123,099.49	174,561,549.75	105,322,538.61	165.74%
VILLAGE BANK INC (A RURAL BANK)	349,950,000.00	174,975,000.00	106,430,495.60	164.40%
RB OF BROOKE'S POINT (PALAWAN) INC	326,810,200.33	163,405,100.17	101,629,964.67	160.78%
BENGUET CENTER BANK INC A RB	203,887,898.01	101,943,949.01	64,294,387.22	158.56%
RB OF DULAG (LEYTE) INC	325,743,738.09	162,871,869.05	119,420,435.33	136.39%
COMMTY RB OF DAPITAN CITY INC	423,834,317.50	211,917,158.75	161,867,993.76	130.92%
RB OF MIDSAYAP INC	220,163,699.12	110,081,849.56	102,966,058.13	106.91%
RB OF GENERAL TRIAS INC	261,603,795.02	130,801,897.51	139,393,957.69	93.84%
RB OF SAN MATEO(ISABELA) INC	256,426,832.43	128,213,416.22	137,514,038.45	93.24%
RB OF CARDONA (RIZAL) INC	263,607,057.40	131,803,528.70	142,508,947.39	92.49%
YUANTA SAVINGS BANK PHILIPPINES INC	1,820,245,950.34	910,122,975.17	992,257,234.14	91.72%
MALAYAN BANK SAVINGS AND MORT BANK INC	2,633,507,798.20	1,316,753,899.10	1,468,433,302.28	89.67%
TANAY RB INC	711,592,793.30	355,796,396.65	413,538,998.72	86.04%
BANK OF CHINA LIMITED-MANILA BRANCH	17,190,443,937.60	8,595,221,968.80	10,050,902,348.08	85.52%
PLANBANK "RB OF CANLUBANG PLANTERS INC"	261,072,015.73	130,536,007.87	154,425,067.15	84.53%
RB OF PILAR (BATAAN) INC	259,270,339.01	129,635,169.51	154,060,715.31	84.15%
RANG-AY BANK INC (A RURAL BANK)	891,533,375.17	445,766,687.59	538,461,371.90	82.79%
VALIANT BANK INC (A RURAL BANK)	388,771,681.35	194,385,840.68	235,494,542.72	82.54%
AMA RURAL BANK OF MANDALUYONG INC	1,355,753,000.00	677,876,500.00	891,921,691.67	76.00%
UNITED COCONUT PLANTERS BANK	12,480,467,391.08	6,240,233,695.54	8,381,446,388.01	74.45%
RB OF SAN LUIS (PAMPANGA) INC	166,312,754.71	83,156,377.36	115,428,386.16	72.04%
RB OF MARIA AURORA (AURORA) INC	329,928,490.23	164,964,245.12	238,887,658.99	69.06%
RB OF BAMBANG (NUEVA VIZCAYA) INC	191,102,472.70	95,551,236.35	138,569,500.13	68.96%
RCBC SAVINGS BANK INC	19,595,015,284.38	9,797,507,642.19	15,268,125,557.71	64.17%
COUNTRY BUILDERS BANK INC (A RURAL BANK)	431,463,894.41	215,731,947.21	368,615,858.88	58.52%
ILOCOS CONSOLIDATED COOPERATIVE BANK	281,586,877.24	140,793,438.62	277,471,591.70	50.74%
GATEWAY RURAL BANK INC	114,742,453.88	57,371,226.94	121,478,790.50	47.23%
GUAGUA RURAL BANK INC	1,071,735,536.80	535,867,768.40	1,146,712,356.53	46.73%
RB OF BAYOMBONG INC	171,444,064.32	85,722,032.16	184,378,189.97	46.49%
BOF INC (A RURAL BANK)	588,959,606.28	294,479,803.14	644,838,657.19	45.67%
EQUICOM SAVINGS BANK INC	878,429,475.19	439,214,737.60	990,367,470.10	44.35%
BATAAN DEVELOPMENT BANK	102,400,000.00	51,200,000.00	116,600,014.14	43.91%
UCPB SAVINGS BANK	2,911,217,229.07	1,455,608,614.54	3,408,915,226.74	42.70%
RB OF MAGDALENA (LAGUNA) INC	106,568,951.33	53,284,475.67	128,192,643.52	41.57%
RBG IMPERIAL BANK INC(A RURAL BANK)	75,173,167.73	37,586,583.87	92,643,136.85	40.57%
COMMON WEALTH RURAL BANK INC	104,729,465.19	52,364,732.60	133,731,740.14	39.16%
RB OF MIAGAO (ILOILO) INC	84,744,984.92	42,372,492.46	108,272,092.04	39.14%
BANGKO MABUHAY (A RURAL BANK) INC	268,170,723.71	134,085,361.86	343,335,053.72	39.05%
SUGBUANON RB INC	86,037,427.60	43,018,713.80	113,239,621.31	37.99%
ASIA UNITED BANK CORPORATION	23,221,270,110.76	11,610,635,055.38	31,115,740,576.17	37.31%
GM BANK OF LUZON INC (A RURAL BANK)	364,441,470.08	182,220,735.04	505,251,055.09	36.07%
PEOPLES BANK OF CARAGA INC (A RURAL BANK)	303,768,304.08	151,884,152.04	421,692,152.80	36.02%
PHIL BANK OF COMMUNICATIONS	9,182,681,270.78	4,591,340,635.39	12,773,089,763.85	35.95%
PHIL STAR DEVELOPMENT BANK INC	75,742,055.47	37,871,027.74	109,439,031.42	34.60%
CHINA BANK SAVINGS INC	8,068,068,347.71	4,034,034,173.86	11,700,972,862.23	34.48%
PBCOM RURAL BANK INC	631,246,328.71	315,623,164.36	929,617,827.55	33.95%
LEGAZPI SAVINGS BANK INC	543,831,000.00	271,915,500.00	821,646,648.86	33.09%
RB OF SAN PASCUAL(OBANDO BULACAN)INC	49,753,382.79	24,876,691.40	78,286,430.96	31.78%
NEW RB OF SAN LEONARDO(N.E.) INC	161,153,044.79	80,576,522.40	256,621,413.00	31.40%
LUZON DEVELOPMENT BANK	416,056,368.54	208,028,184.27	724,473,558.19	28.71%
PHIL SAVINGS BANK	20,174,036,169.24	10,087,018,084.62	35,606,728,557.31	28.33%
HIGHLAND RURAL BANK INC	91,730,620.40	45,865,310.20	162,014,267.73	28.31%
RB OF ITOGON (BENGUET) INC	73,738,915.17	36,869,457.59	130,782,659.77	28.19%
PRODUCERS SAVINGS BANK CORPORATION	1,238,704,038.02	619,352,019.01	2,229,352,737.59	27.78%
DUMAGUETE CITY DEV BANK INC	174,110,752.94	87,055,376.47	317,685,816.79	27.40%
RNG COASTAL BANK INC(A RURAL BANK)	92,352,342.55	46,176,171.28	173,136,852.63	26.67%
ENTREPRENEUR RB INC	47,948,549.11	23,974,274.56	91,204,643.94	26.29%
PENBANK INC (A PDB) (FORMERLY: PENINSULA RB INC)	317,151,823.01	158,575,911.51	613,109,720.77	25.86%
COOPERATIVE BANK OF BOHOL	55,948,079.34	27,974,039.67	108,855,628.62	25.70%
COOPERATIVE BANK OF NUEVA VIZCAYA	55,169,411.25	27,584,705.63	108,390,035.23	25.45%
MALARAYAT RB INC	101,784,457.88	50,892,228.94	200,420,963.79	25.39%

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 March 31, 2019. Moreover, their capital can be overstated.  See a previous blog post "Overstated Capital of Philippine Banks as of March 31, 2019". 

 

As such, any reduction in their capital cushion could knock down an already weak bank.

Source: www.bsp.gov.ph