November 18, 2017, 3:10 am
Facebook iconTwitter iconYouTube iconGoogle+ icon
1 Philippine Peso = 0.07227 UAE Dirham
1 Philippine Peso = 2.22452 Albanian Lek
1 Philippine Peso = 0.03503 Neth Antilles Guilder
1 Philippine Peso = 0.34355 Argentine Peso
1 Philippine Peso = 0.02607 Australian Dollar
1 Philippine Peso = 0.03503 Aruba Florin
1 Philippine Peso = 0.03935 Barbados Dollar
1 Philippine Peso = 1.64187 Bangladesh Taka
1 Philippine Peso = 0.0327 Bulgarian Lev
1 Philippine Peso = 0.00742 Bahraini Dinar
1 Philippine Peso = 34.29713 Burundi Franc
1 Philippine Peso = 0.01968 Bermuda Dollar
1 Philippine Peso = 0.02667 Brunei Dollar
1 Philippine Peso = 0.13499 Bolivian Boliviano
1 Philippine Peso = 0.0645 Brazilian Real
1 Philippine Peso = 0.01968 Bahamian Dollar
1 Philippine Peso = 1.28247 Bhutan Ngultrum
1 Philippine Peso = 0.20681 Botswana Pula
1 Philippine Peso = 393.93939 Belarus Ruble
1 Philippine Peso = 0.03931 Belize Dollar
1 Philippine Peso = 0.02511 Canadian Dollar
1 Philippine Peso = 0.01951 Swiss Franc
1 Philippine Peso = 12.40988 Chilean Peso
1 Philippine Peso = 0.13051 Chinese Yuan
1 Philippine Peso = 59.13813 Colombian Peso
1 Philippine Peso = 11.08422 Costa Rica Colon
1 Philippine Peso = 0.01968 Cuban Peso
1 Philippine Peso = 1.83943 Cape Verde Escudo
1 Philippine Peso = 0.42677 Czech Koruna
1 Philippine Peso = 3.47954 Djibouti Franc
1 Philippine Peso = 0.12411 Danish Krone
1 Philippine Peso = 0.94451 Dominican Peso
1 Philippine Peso = 2.25075 Algerian Dinar
1 Philippine Peso = 0.2609 Estonian Kroon
1 Philippine Peso = 0.34652 Egyptian Pound
1 Philippine Peso = 0.53227 Ethiopian Birr
1 Philippine Peso = 0.01667 Euro
1 Philippine Peso = 0.04117 Fiji Dollar
1 Philippine Peso = 0.0149 Falkland Islands Pound
1 Philippine Peso = 0.01491 British Pound
1 Philippine Peso = 0.0895 Ghanaian Cedi
1 Philippine Peso = 0.92483 Gambian Dalasi
1 Philippine Peso = 177.2137 Guinea Franc
1 Philippine Peso = 0.14447 Guatemala Quetzal
1 Philippine Peso = 4.05313 Guyana Dollar
1 Philippine Peso = 0.15372 Hong Kong Dollar
1 Philippine Peso = 0.46232 Honduras Lempira
1 Philippine Peso = 0.12613 Croatian Kuna
1 Philippine Peso = 1.21291 Haiti Gourde
1 Philippine Peso = 5.19481 Hungarian Forint
1 Philippine Peso = 266.09603 Indonesian Rupiah
1 Philippine Peso = 0.06915 Israeli Shekel
1 Philippine Peso = 1.27847 Indian Rupee
1 Philippine Peso = 22.9634 Iraqi Dinar
1 Philippine Peso = 693.36875 Iran Rial
1 Philippine Peso = 2.02755 Iceland Krona
1 Philippine Peso = 2.47068 Jamaican Dollar
1 Philippine Peso = 0.01392 Jordanian Dinar
1 Philippine Peso = 2.21558 Japanese Yen
1 Philippine Peso = 2.03994 Kenyan Shilling
1 Philippine Peso = 1.37194 Kyrgyzstan Som
1 Philippine Peso = 79.10272 Cambodia Riel
1 Philippine Peso = 8.33333 Comoros Franc
1 Philippine Peso = 17.70956 North Korean Won
1 Philippine Peso = 21.5429 Korean Won
1 Philippine Peso = 0.00594 Kuwaiti Dinar
1 Philippine Peso = 0.01614 Cayman Islands Dollar
1 Philippine Peso = 6.52952 Kazakhstan Tenge
1 Philippine Peso = 163.2625 Lao Kip
1 Philippine Peso = 29.73239 Lebanese Pound
1 Philippine Peso = 3.02145 Sri Lanka Rupee
1 Philippine Peso = 2.44392 Liberian Dollar
1 Philippine Peso = 0.27873 Lesotho Loti
1 Philippine Peso = 0.05999 Lithuanian Lita
1 Philippine Peso = 0.01221 Latvian Lat
1 Philippine Peso = 0.02676 Libyan Dinar
1 Philippine Peso = 0.18535 Moroccan Dirham
1 Philippine Peso = 0.34406 Moldovan Leu
1 Philippine Peso = 1.02145 Macedonian Denar
1 Philippine Peso = 26.82015 Myanmar Kyat
1 Philippine Peso = 48.01181 Mongolian Tugrik
1 Philippine Peso = 0.15831 Macau Pataca
1 Philippine Peso = 6.91558 Mauritania Ougulya
1 Philippine Peso = 0.66706 Mauritius Rupee
1 Philippine Peso = 0.30638 Maldives Rufiyaa
1 Philippine Peso = 14.09681 Malawi Kwacha
1 Philippine Peso = 0.37473 Mexican Peso
1 Philippine Peso = 0.08186 Malaysian Ringgit
1 Philippine Peso = 0.27564 Namibian Dollar
1 Philippine Peso = 7.02479 Nigerian Naira
1 Philippine Peso = 0.60232 Nicaragua Cordoba
1 Philippine Peso = 0.16201 Norwegian Krone
1 Philippine Peso = 2.03758 Nepalese Rupee
1 Philippine Peso = 0.02897 New Zealand Dollar
1 Philippine Peso = 0.00757 Omani Rial
1 Philippine Peso = 0.01968 Panama Balboa
1 Philippine Peso = 0.06374 Peruvian Nuevo Sol
1 Philippine Peso = 0.06312 Papua New Guinea Kina
1 Philippine Peso = 1 Philippine Peso
1 Philippine Peso = 2.07261 Pakistani Rupee
1 Philippine Peso = 0.07062 Polish Zloty
1 Philippine Peso = 111.06651 Paraguayan Guarani
1 Philippine Peso = 0.07477 Qatar Rial
1 Philippine Peso = 0.07746 Romanian New Leu
1 Philippine Peso = 1.16854 Russian Rouble
1 Philippine Peso = 16.37721 Rwanda Franc
1 Philippine Peso = 0.07379 Saudi Arabian Riyal
1 Philippine Peso = 0.15368 Solomon Islands Dollar
1 Philippine Peso = 0.26269 Seychelles Rupee
1 Philippine Peso = 0.13104 Sudanese Pound
1 Philippine Peso = 0.16586 Swedish Krona
1 Philippine Peso = 0.02669 Singapore Dollar
1 Philippine Peso = 0.01491 St Helena Pound
1 Philippine Peso = 0.43695 Slovak Koruna
1 Philippine Peso = 149.94097 Sierra Leone Leone
1 Philippine Peso = 10.99961 Somali Shilling
1 Philippine Peso = 408.72688 Sao Tome Dobra
1 Philippine Peso = 0.17218 El Salvador Colon
1 Philippine Peso = 10.13341 Syrian Pound
1 Philippine Peso = 0.2756 Swaziland Lilageni
1 Philippine Peso = 0.64542 Thai Baht
1 Philippine Peso = 0.04872 Tunisian Dinar
1 Philippine Peso = 0.04538 Tongan paʻanga
1 Philippine Peso = 0.07647 Turkish Lira
1 Philippine Peso = 0.13045 Trinidad Tobago Dollar
1 Philippine Peso = 0.59144 Taiwan Dollar
1 Philippine Peso = 43.97875 Tanzanian Shilling
1 Philippine Peso = 0.52076 Ukraine Hryvnia
1 Philippine Peso = 71.36954 Ugandan Shilling
1 Philippine Peso = 0.01968 United States Dollar
1 Philippine Peso = 0.57989 Uruguayan New Peso
1 Philippine Peso = 158.20543 Uzbekistan Sum
1 Philippine Peso = 0.19628 Venezuelan Bolivar
1 Philippine Peso = 446.89099 Vietnam Dong
1 Philippine Peso = 2.12515 Vanuatu Vatu
1 Philippine Peso = 0.05043 Samoa Tala
1 Philippine Peso = 10.9329 CFA Franc (BEAC)
1 Philippine Peso = 0.05313 East Caribbean Dollar
1 Philippine Peso = 10.93861 CFA Franc (BCEAO)
1 Philippine Peso = 1.9754 Pacific Franc
1 Philippine Peso = 4.91834 Yemen Riyal
1 Philippine Peso = 0.27568 South African Rand
1 Philippine Peso = 102.11531 Zambian Kwacha
1 Philippine Peso = 7.12121 Zimbabwe dollar

Think tank says PH banking sector remains positive

BMI Research, a member of the Fitch Group of Companies, said the growth outlook for the Philippine banking sector remains positive, and there are few risks to financial stability over the medium term. 

In a report, BMI said some of the key factors supporting their constructive view include a strong economic growth outlook, healthy capitalization and liquidity profiles, and ongoing positive structural reforms.

“The Philippine economy expanded by an impressive rate of 6.8 percent in 2016 with a boost from the one-off election spending, and although we forecast real GDP growth to taper off slightly to 6.3 percent in 2017, it will nevertheless remain one of the fastest growing economies in the region,” BMI said.

This outperformance, according to the think tank, will be underpinned by an improved business environment, positive demographics, and the government expansionary fiscal plans, which will continue to drive investment and output growth. 

“President Rodrigo Duterte’s efforts to improve bilateral relations with China and Japan will also help to boost trade and investment with the two economic powerhouses in the region, further reinforcing our positive view on the economy. This should help to drive credit demand as both households and businesses assume leverage against a backdrop of profitable opportunities and relatively low existing indebtedness,” BMI said.

BMI forecast loan growth to come in at 17.0 percent in 2017, which is similar to their estimate of 18.0 percent in 2016.

BMI also expects asset quality across the Philippine banking sector “to remain broadly stable and low as corporate earnings and asset valuations typically correlate positively with strong economic growth.”

“In other words, we see limited scope for further improvements, but do not expect deterioration,” BMI said.

BMI noted increasing loan exposure to consumers and small-medium enterprises (SME) - as banks deepen their penetration and search for engine of growth - may result in non-performing loan (NPL) ratio rising gradually. 

On the other hand, BMI said as the mid-tier banks continue to develop their risk-management tools and as banks resolve their existing problem assets with the support of higher asset prices, this will help to bring down NPLs on their balance sheets. 

Since January 2013, gross NPLs have been on a broad downtrend, falling from 3.5 percent, to 2.0 percent in February 2017.

BMI also noted one of the key strengths of the banking sector is that it boasts high capital buffers which should provide sufficient defense against moderate credit shocks and unexpected losses. 

“The capital-to-asset ratio was recorded at 12.1 percent as of February 2017, while the latest available data for capital adequacy ratio on a solo basis (which excludes subsidiaries) stood at 15.6 percent in September 2016. We expect the industry to maintain healthy buffers amid active supervision by the central bank and given that many of leading banks have the ability to raise fresh capital due to strong financial backing from large conglomerates,” BMI said.

BMI added the banking sector’s loan-to-deposit ratio is among the lowest in Asia, suggesting that Philippine banks have financed loans largely by using deposits rather than through international wholesale funding. 

“This reduces refinancing risk in the banking system as external borrowing tends to be difficult to roll over in times of uncertainty. It also lowers asset-liability mismatch risk arising from monetary tightening in the US, and currency movements,” the report cited.

Although the banking sector as a whole is on a sound footing, BMI noted that it has a long tail with over 600 banks as of end-2016, of which the largest 10 banks account for over 70 percent of total assets. 

“The high degree of fragmentation also comes with uneven risk distribution where performance indicators are skewed towards dominant banks in the industry. That said, the government has been encouraging consolidation in the industry, which we believe will help to reduce the regulatory burden on the central bank and improve financial intermediation processes in the country,” BMI said.

The Bangko Sentral ng Pilipinas has signed a finalized agreement with its Malaysian counterpart in early April regarding the entry of qualified Asean banks, in line with the Asean Banking Integration Framework (ABIF), and a Letter of Intent with the Bank of Thailand to begin similar discussions. 

“The entry of well-managed foreign banks will likely provide further impetus for consolidation as domestic banks gear up for more competition from abroad, and could potentially enable knowledge transfers from overseas which would improve risk management,” BMI said.
Rating: 
No votes yet

Column of the Day

Thumbs up and down at Asean

By JOSE BAYANI BAYLON | November 17,2017
‘This is the issue of the general public’s grasp of what it means for our country to be part of a greater, regional association of nations.’

Opinion of the Day

Onward: Planned Parenthood; Human Rights summit

By DAHLI ASPILLERA | November 17, 2017
‘Congratulations to the country’s PNP, AFP and all law enforcers, for a productive, uninterrupted, impressive Asean Summit. Great talents had put together a successful show.’