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
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