RP banks stable amid crisis

RP banks stable amid crisis

MANILA (Reuters): Philippine commercial banks performed moderately well as of the second quarter ended June despite the lingering financial crisis, the central bank said.

The central bank said in a statement Sunday the capital ratio of local commercial banks in the second quarter outperformed their counterparts in Asia, standing at 17.05 percent against the previous quarter's 16.83 percent.

The central bank said the latest capital ratio of commercial banks in Malaysia was 11.8 percent, Indonesia stood at 10.0 percent and Thailand was 9.5 percent.

The central bank said loan quality of commercial banks remained manageable in the second quarter as non-performing loans (NPL) ratio was single-digit compared to the 25 to 50 percent NPL ratio of others in the region.

The central bank said earlier non-performing loans amounted to 142.7 billion pesos (US$3.25 billion) in the second quarter against 112.6 billion pesos in the first quarter.