Resources of thrift grow 15% to B

Thrift banks have R46.19 billion worth of assets under management (AUM) as of end-March this year, up 15.16 percent yearon-year, data from the Bangko Sentral ng Pilipinas (BSP) said.

The mid-sized banks’ net financial assets increased by 17.19 percent to R31.70 billion from R27 billion during the period while deposit in banks fell to R9.06 billion or down by 4.64 percent year-on-year.

Of total assets, net loans which includes equity investments amounted to R4.74 billion, up by 46.44 percent than the previous year’s R3.23 billion.

As for cash and due from banks, these were wiped out in the first quarter compared to R1.42 billion same period in 2017. These are cash on hand, checks and other cash items, as well as due from the BSP.

There are 55 thrift banks as of end-March. Thrift banks include savings and mortgage banks, private development banks, stock savings and loan associations and micro finance banks.

In February this year, the BSP approved the minimum liquidity requirement for thrift banks to improve its capability to withstand stress or shocks. This is the Minimum Liquidity Ratio (MLR) for the smaller banks versus the big banks’ Liquidity Coverage Ratio (LCR) which was issued in 2016.

The subsidiaries and affiliates of universal and commercial banks are already covered for consistency in managing liquidity risks and these will be subject to a minimum LCR of 100 percent from January 1, 2019.

As for the stand-alone thrift banks, they will be subject to an MLR of 20 percent by next year.

The BSP also directed thrift banks to monitor the level of their respective ratios this year while they review the rules for any adjustment.