Philippines 5% leverage ratio causes few ripples

BSP brings in one of the highest basic leverage ratios globally, but local firms are unconcerned


Banks in the Philippines say that they are unlikely to be adversely affected by the decision of the country's central bank to impose a leverage ratio of 5%, which is two percentage points high than that recommended by the Basel III framework.

However, there are concerns that the high leverage ratio could restrict bank balance sheet expansion in the future.

Announcing the new leverage ratio on May 29, Central Bank of the Philippines (BSP) governor Amando Tetangco stressed that excessive leverage

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact [email protected] or view our subscription options here:

You are currently unable to copy this content. Please contact [email protected] to find out more.

To continue reading...

You need to sign in to use this feature. If you don’t have a account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here: