news conference berne, 15 june 2017 fritz zurbrugg introductory remarks by fritz zurbrugg in my remarks today, i will present the key findings from this year ’ s financial stability report, published by the swiss national bank this morning. in the first part of my speech, i will look at the situation of the big banks, focusing on the progress made in implementing the revised ‘ too big to fail ’ regulations ( tbtf2 ) that came into effect almost a year ago. in the second part of my remarks, i will outline our current assessment of the situation at domestically focused banks. big banks let me start then with the big banks and the tbtf2 regulations. the revised regulations are designed to resolve the ‘ too big to fail ’ issue in switzerland, so that systemically important banks no longer have to be bailed out with taxpayers ’ money in the event of a crisis. the tbtf2 regulations rest on two complementary pillars. first, they are aimed at strengthening the resilience of systemically important banks in a going - concern perspective. they therefore specify higher requirements for going - concern capital in particular, thereby reducing the likelihood of a systemically important bank getting into financial distress. second, if a systemically important bank nevertheless gets into financial distress – this is called the gone - concern perspective – the regulations provide a framework for orderly resolution, ensuring the continuation of systemically important functions without the use of public funds. to this end, the regulations stipulate requirements both for loss - absorbing capacity in a gone - concern perspective and for resolution planning. what progress have the two big banks made in implementing the tbtf2 regulations? regarding the first pillar, resilience, both big banks have improved their loss - absorbing capacity in a going - concern perspective since the last financial stability report. with this further improvement, credit suisse and ubs are on track to meet the final capital page 1 / 3 berne, 15 june 2017 fritz zurbrugg news conference requirements. 1 in a going - concern risk - weighted perspective, both banks are already fully compliant. however, a further improvement is necessary with respect to the leverage ratio. the snb acknowledges the progress made in improving the capital situation. achieving full compliance with the tbtf2 regulations will further strengthen loss - absorbing capacity. this is necessary as the big banks ’ loss potential relative to their capitalisation continues to be substantial, when measured on the basis of the stress tests carried out by the snb

we ’ ve learned our lessons from the asian financial crisis. as of end - 2020, the philippine banking system ( pbs ) has exhibited sustained growth in assets, adequate liquidity buffers, strong capital position, and ample loan loss reserves. the assets of the banking system managed to grow from 2019 by 6. 1 percent to p19. 4 trillion as of end - 2020. the growth was mainly driven by higher deposits, which rose by 8. 9 percent in 2020. the liquidity coverage ratio ( lcr ) of universal and commercial banks as of end - november 2020 was comfortably high at 201. 0 percent, twice the regulatory minimum of 100. 0 percent. similarly, the system ’ s net stable funding ratio ( nsfr ) indicates its ability to provide stable funding in the medium term. as of end - september 2020, the capital adequacy ratio of universal and commercial banks was at 16. 8 percent on a solo basis, and 17. 2 percent on a consolidated basis. this is much higher than the bsp ’ s 10 percent standard and the bank for international settlement ’ s 8 percent standard. on the other hand, credit growth of universal and commercial banks decelerated by 2. 4 percent year - on - year as of january 2021 as banks tightened their overall credit standards for both loans to enterprises and households. non - performing loans and non - performing assets ratios rose to 3. 6 percent and 2. 6 percent, respectively, in december 2020. however, these ratios remain manageable and are much lower than the double - digit levels recorded during the asian financial crisis. while lower consumer spending and business activities continue to dampen bank lending growth, the government is taking measures to propel economic recovery in the country. this may be one of the basis for the banks ’ projections of increases in their loan portfolios by 10. 0 percent to 15. 0 percent over the next two years, these projections are based on the latest bsp ’ s banking sector outlook survey. meanwhile, the enactment of the financial institutions strategic transfer act will aid in the 3 / 4 bis central bankers'speeches industry ’ s management of non - performing loans. in brief, the country is poised for a strong recovery, supported by years of longstanding structural reforms, as well as new measures that are being put in place to prepare for a postpandemic economy – one that is better, greener, more inclusive, and more technology - based. challenge to toap new leadership ladies