Philippine Banks Prepare for Higher Capital Requirements

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By Ted P. Torres (The Philippine Star)

Rapidly expanding local firms will increasingly turn to the capital markets to satisfy their huge appetite for fresh funds, according to the local unit of the Dutch financial giant ING Bank.

ING Bank, which was behind the recent major bond listing of San Miguel Brewery Inc. (SMB), said many Philippine banks for instance, are gearing up for higher capital requirements under the global Basel III agreement.

Most financial institutions are flexing their financial muscles for expansion to keep up with the region’s growth momentum, as demand from domestic institutional investors is rising.

“We just need to look at the performance of the local currency and domestic bonds that reflect this trend,” Johnson Sia, head of financial markets at ING Manila, said.