Thrift banks’ assets up 8.5% to P233.3 B in 2000

Total assets of thrift banks increased 8.51 percent to P233.30 billion in 2000, data obtained from the Chamber of Thrift Banks (CTB) show.

Thrift banks include savings banks, development banks, and savings and loan associations.

CTB figures show that net loans rose 5.5 percent to P126.25 billion in 2000. On the other hand, investments dropped 9.23 percent as a result of the so-called juetengate scandal involving then President Joseph Estrada.

Deposits grew by 6.408 percent to P140.31 billion in 2000, but the capital to risk assets ratio of the thrift banks rose to 24.44 percent compared to 24.27 percent in 1999 while the non-performing loan (NPLs) ratio dropped to 12 percent from 15.61 percent in 1999.

Lower non-performing assets (NPAs) to total assets ratio fell to 15.59 percent last year compared to 17.61 percent in 1999 while the leverage ratio of the industry increased to 5.1558 percent in 2000 from 5.0945 the year before.

Meanwhile, the CTB welcomed efforts by government to look into ways of converting NPAs and NPLs into earning assets through a special purpose vehicle called asset management company or (AMC).

"That can be used to convert liabilities into assets, and that can be used by the thrift banks for non-allied purposes," CTB president Francisco S. Magsajo Jr. said.

Magsajo added however that the details have still to be worked out between the Bangko Sentral ng Pilipinas (BSP) and the banking industry. – Ted Torres