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Banking

BSP proposes flexibility in CAR

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MANILA, Philippines - The Bangko Sentral ng Pilipinas (BSP) has plans to mandate banks that take more risks than others to put up more capital.

These banks will have to maintain a capital adequacy ratio (CAR) higher than minimum required from their more conservative counterparts.

Conversely, more conservative banks may be allowed to have a CAR lower than the current 10 percent minimum imposed by the BSP on all local banks.

ADEQUACY

ALLOWED

BANKS

BSP

CAPITAL

CAR

CONSERVATIVE

MINIMUM

PILIPINAS

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