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MANILA - Philippine banks remained solvent last year, with their average capital adequacy ratio inching up and staying well above the regulatory minimum.
In a statement, the Bangko Sentral ng Pilipinas said the capital adequacy ratio of the country's lenders rose 0.21 percentage points to 16.65 percent on solo basis and to 17.64 percent on consolidated basis in the fourth quarter of 2011 from levels seen in the third quarter of the same year.
The BSP requires a 10 percent minimum CAR.
Similarly, the average Tier 1 capital ratios stood at 14.45 percent on solo basis and at 14.48 percent on consolidated basis, both well above the international norm of
Quarter-on-quarter, qualifying capital rose 2.65 percent on solo basis and by 2.59 percent on consolidated basis.
Risk weight assets increased by slower rates of 1.36 percent on solo basis and 1.38 percent on consolidated basis.
Banks are required to assign risk weights to their assets depending on how certain their values would remain in the face of difficulties. The higher the risk, the bigger the capital banks are required to maintain.
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