Banks remain solvent with above-minimum capital ratios - BSP

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MANILA, Philippines - The Bangko Sentral ng Pilipinas (BSP) on Friday said the country's banks remain solvent at end-September 2011.

In a statement, the BSP said the capital adequacy ratio (CAR) of the country's lenders stood at 16.44 percent on solo basis and at 17.43 percent on consolidated basis. This is well above the central bank's minimum of 10 percent and the international standard of eight percent.

Tier 1 capital ratios also were higher at 14.14 percent on solo basis and 14.23 percent on consolidated basis.

Tier 1 capital represents equity and excludes debt that qualifies as capital.

A high CAR indicates a strong buffer against losses.

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