Banking resources up by 9.09% in 2005 

Banking resources up by 9.09% in 2005

(Business World (Philippines) Via Thomson Dialog NewsEdge)Total resources of the local financial system improved last year as a result of banks' aggressive disposal of bad loans to special purpose vehicles.In particular. preliminary data from Bangko Sentral ng Pilipinas (BSP) showed. Growth during the prior year stood at 7.68%.
The financial system comprises banks - commercial. thrift and rural banks - and nonbanks. namely investment houses. finance companies. securities dealers and brokers. lending investors. nonstock savings and loan associations. loan associations and venture capital firms.Nonbanks also include private and government insurance companies. including the Social Security System (SSS) and Government Service Insurance System (GSIS).The commercial banking sector is the biggest component of the financial system. accounting for more than 80% of the system's resources. The financial system's overall loan quality and banks' assets have been improving since Republic Act 9182 or the Special Purpose Vehicle (SPV) Act was enacted in 2002.Banks' total assets went up by 7.15% and 8.59% in 2004 and 2005. respectively. Published financial statements of banks have likewise shown that their loan portfolios had gone up last year. During the period. the loan portfolio of 42 local and foreign commercial banks totaled P1.52 trillion. nonperforming loans as a percentage of total loans went down to 7.4% from 8.7% in November last year. Monetary officials are confident that the level of nonperforming loans will continue to improve this year with the extension of the SPV law.Deposits. the system's main source of funding. have remained fairly stable in the past three years. Total deposits went up by 6% to P2.783 trillion from P2.625 trillion in the previous year.Growth in bank lending. continued to be modest at 1.6% to P1.518 trillion in 2005.Rural banks also performed well last year. with resources climbing by 15.12% to P120.3 billion from P104.5 billion.These banks have been a little more prudent with their credit management compared with the bigger capitalized and more aggressive commercial banks. In fact. bad loans of the country's rural and cooperative banks dropped to their lowest level in eight years to 10.93% last year. During the 1997 Asian financial crisis. the ratio stood at 15.37%.The financial standing of the thrift banking system also recorded significant improvements last year as overall resources rose to P357.8 billion from the prior year's P317.9 billion. [TB] Total resources of the financial system As of December 2005 (In billion pesos) % Change Dec-05 Dec-04 Dec-03 04-05 03-04 Commercial Banks 3. Altiris Updates IT Asset Management Products ? Microsoft Announces Interops Council ? Magic Sells CRM Unit to eContact Software ? ART Team Up For E-CRM. Google: Rep. Gonzalez's Amendment Mocked Net ' ? A Brief Interview with Oracle's Mike Betzer Regarding Telephony@' ? VoIP Logic Adds Sylantro to the Mix ? Tekelec Intros ENUM and Enhanced LNP ? Problems for Apple iTunes in Norway ? Global Crossing Revs Up DE-'? Avaya Intelligent Communications'? American Telecom Launches First '? Skype's limits far from '? CSR Partners with Callpod(R) '? TELE2 ACQUIRES MINORITY STAKES I'? Temasek Polytechnic Gains Innova'? TV-phone wars recruit forces
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