working committee - asean banking integration framework
TRANSCRIPT
Working Committee - ASEAN Banking Integration Framework Meeting – Tour de Tab:
PHILIPPINES
Dr. Johnny Noe E. RavaloAssistant Governor
Bangko Sentral ng Pilipinas6 December 2016
of 1,634 cities and municipalities do not have a banking office
42%
68%
of the total number of deposit accounts
of the total amount of deposits
are concentrated in NCR
archipelagic barriers pose a significant challenge to financial access
of adults had a loan in a formal financial institution in the past year
11.8%With at least one banking office
Unbankedof adults have an account at a formal
financial institution
31.3%
36%
Financial Demographics
Physical Footprint of Banks
996
618
6,650
10,318
600
650
700
750
800
850
900
950
1,000
5,5006,0006,5007,0007,5008,0008,5009,0009,500
10,00010,50011,00011,50012,000
1998* 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Jun-16
Head Offices (RHS) Branches (LHS)
No. of Head Offices (RHS)
Philippine Banking System: Total Banking UnitsFor End-Periods Indicated
* BSP's merger and consolidation policy began in 1998 with the issuance of Circular No. 172 dated 03 September 1998.
No. of Branches (LHS)
2
• Over 100 million individuals whose average age is 24 yrs old
• an archipelago of 7,107 islands
• 186 individual languages with 19 regional languages
• More than 10 ethnic groups
• 18 regions, 81 provinces, 144 cities, 1,490 municipalities, and 42,029 barangays
• 86% of the population is Roman Catholic
The Philippines In a Snapshot
121 banks engaged in e-banking13,435 e-money agents
501 MicroBanking Offices
Foreign banks have a market share of 8.4%
Among the world’s best in regulation for microfinance
Augmented By Alternative Delivery Mechanisms
18,328 ATMs (56.4% on-site, 43.6% offsite)
Basel III
Universal/Commercial Banks including their
subsidiary banks
Basel 1.5
Stand-alone thrift and rural banks
Implementation of Capital Standards
Capital Reforms Liquidity StandardsSystemic Risk &
Interconnectedness
Tier 1
Tier 2
Capital Conservation
RWAs
Credit
Market
Operational
LCR
NSFR
D-SIBs
OTC Derivatives
Interfinancial Exposures
New with Basel 3
Updated with Basel 3
Updated with Basel 2.5
No change from Basel 2
Trading Books
SecuritizationCountercyclical
Leverage
The Basel 3 Reform Agenda Remains Key
Emerging Challenges to Regional Integration
• Different jurisdictions are at different macro-financial stages Different existing prudential frameworks Different paths towards regional integration Different capacity-building requirements & prospects
• Global reforms would need to take cognizance of “proportionality”
• Reforms would need a certain “sequence” to be more effective
• Financial stability is the overarching anchor but …
BANKING
CAPITALMarket
Price DiscoveryFunding Liquidity
Payment System• Retail• Large Value• Securities
MarketInfra
Mobilization and Intermediation
Cash Market
Liquidity Price Discovery
ContingentMarket
Insurance Derivatives
Price DiscoveryHedgingHedging
Integration Creates an Added (Risk) Perspective
Repo/Securities LendingASEAN Integration
BENCHMARKS
Basel AccordCrisis Management,
Resolution, Recovery
Private Banking Bank CapitalASEAN Integration
FMI
BENCHMARKSMarket Liquidity
ASEAN Integration
OTC Derivatives BENCHMARKSMinimum capital
ASEAN Integration
ASEAN Integration
ASEAN Integration
CapacityBuilding
Capacity Building
Payments & Settlements
Capital Market Dev’t
Banking
Market Surveillance
A Possible Sequencing of the Reforms
Macro
Risks
Credit
Risks
Market
Risks
Our Re-Thinking of the Systemic Risk Framework
Contagion
Risks
Liquidity Risks• Funding• Bank Liquidity• Leverage
Our risk framework is built on an analysis of five key risks which we believe to affect markets, institutions, transactions and agents.
This allows us to focus on the linkages between risks that could curtail a well-functioning macro-financial market
The Emergence of the Impossible Trinities
Capital Mobility
Fixed Exchange Rate
Financial Stability
FinancialIntegration
Sovereign Monetary Policy
Sovereign Monetary Policy
Working Committee - ASEAN Banking Integration Framework Meeting – Tour de Tab:
PHILIPPINES
Dr. Johnny Noe E. RavaloAssistant Governor
Bangko Sentral ng Pilipinas6 December 2016