Philippines 5% leverage ratio causes few ripples

Amando Tetangco, governor of the Central Bank of the Philippines

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 higher 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 excessive leverage

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