Banks sustain double-digit rise in resources

Resources of the country’s banking sector sustained a double-digit pace of growth in the first seven months of the year as rising income levels allowed individuals and enterprises to save more.

According to the Bangko Sentral ng Pilipinas (BSP), combined resources of banks in the country amounted to P7.18 trillion as of end-July, up by 10.7 percent from the P6.48 trillion reported in the same period last year.

Growth was driven largely by the increase in deposits of individuals and corporate entities, the BSP said.

According to Amando Tetangco Jr., central bank governor, the public has complete confidence in banks as indicated by the rise in deposits.

Monetary officials said the rising resources of banks in the country would enable them to provide more loans to consumers and investors, and help accelerate growth of the economy.

Universal and commercial banks accounted for most of the combined resources at P6.4 trillion. This was an 11.6-percent growth from the P5.29 trillion seen in the same period last year.

Thrift banks also held P593.9 billion, up year on year by 3.8 percent.

Rural banks accounted for P180.13 billion of total resources, up year on year by 3.8 percent from P173.55 billion.

Tetangco said the country’s banking sector remained healthy despite the financial problems abroad.

Also, he said the country’s banking sector recently passed a stress test, showing considerable amount of capital enough to withstand possible threats to the financial system.

“Our recent stress test results show that for the 55 universal, commercial and thrift banks tested, their aggregate balance sheet shows a remarkable ability to absorb extreme values of risk,” Tetangco said.

Banks’ capital adequacy ratios remain significantly higher than regulatory requirements, he added.