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Sunday, June 26, 2011

Bank assets of the Philippines up 9.4% to ₱ 7.12 trillion as of Q1 2011

The Bank Assets of the Philippines up and remained stable and resilient as its total resources grew 9.4% in the first quarter of the year, data released by the Bangko Sentral ng Pilipinas (BSP) over the weekend showed.

Statistics showed that the total assets of the banking industry reached 7.12 trillion from January to March this year or 614 billion higher than the P6.506 trillion worth of resources booked in the same period last year.

Universal and commercial banks accounted for 89.2% of the industry's total assets while thrift banks cornered 8.3% and rural and cooperative banks shared the remaining 2.6%.

The central bank reported that resources of universal and commercial banks posted a double-digit growth of 10% to 6.35 trillion in the first quarter of the year from 5.77 trillion in the same quarter last year.

On the other hand, assets of thrift banks expanded 6.8% to 592.5 billion in the first three months of the year from 554.73 billion in the same period last year.

The BSP said the banking industry's assets continued to expand as more Filipinos turn to savings as a sign of the public's trust in the banking sector.

The industry's assets posted a double-digit growth of 11% to 7.23 trillion last year from 6.51 trillion in 2009 with Filipinos saving more while major players continued to mobilize deposits to fund new loans.

Data showed that resources of universal and commercial banks expanded by 11% to 6.42 trillion last year from 5.78 trillion in 2009 and accounted for about 89% of the industry's total assets.

On the other hand, assets of thrift banks grew by 13.1% to 629 billion last year from 556.1 billion and cornered a share of 8.7% of the total assets of banks.

Peso-denominated deposits increased by 11.2% to 4.02 trillion last year from 3.6 trillion in 2009 while foreign currency deposits climbed 4.2% to P1.1 trillion from 1.05 trillion. In all, bank deposits grew by 9.6% to 5.12 trillion last year from 4.67 trillion in 2009.

The BSP said the number of banks retreated by 27 to 758 last year from 785 in 2009 due to mergers as well as the closure of some banks. The number of universal and commercial banks was steady at 38 followed by thrift banks with 73 while the number of rural banks fell to 647 from 674.

The data showed that the operating network including branches of the banking system inched up by 2.9% to 8,869 last year from 8,620 in 2009 reflecting mainly the increase in commercial and rural banks' branches or agencies.

Monetary authorities led by BSP Governor Amando M. Tetangco Jr. believed that 2010 was a banner year for Philippine banks contributing largely to the country's stronger-than-expected economic growth amid the fragile recovery in advanced economies led by the US as well as the debt crisis in Europe.

Tetangco earlier said that the country's sound, stable, and liquid banking system was one of the reasons behind the sustained economic growth after the industry posted healthy growth rates in lending, deposits, and profitability in 2010.

 

China -Opposite to their promise not to use force - They Creates a Storm in Naval Show of Force In Spratlys

China had promised not to use force in settling the disputes in their claim over the Spratlys in the West Philippines Seas, and Paracels but they creates a Storm in Naval Show of Force – Opposite to their promise not to use force which gains criticism and protest from Singapore as Chinas’ provocation to their small neighbors. Vietnam protest in the Chinese Embassy in Hanoi and Philippines send the VRP Rajah Humabon Destroyer to the West Philippines’ Sea to protect their sovereignty .

On any given day, up to a thousand ships sail into Singapore’s harbor, arguably the busiest in Southeast Asia.

But on June 19, China’s maritime patrol ship, the Haixun-31, docked in Singapore after sailing through the disputed Paracel and Spratlys archipelagos in the West Philippine Sea (South China Sea), sending waves of anxieties throughout the region as far afield as Japan and the United States, the leading naval power in the Pacific.

The visit of Haixun-31 did not come unnoticed as it took place amid the acrimonious dispute between China and a number of Asian countries, including the Philippines and Vietnam, over territorial claims in the West Philippine Sea.

The visit came as the Philippines deployed its flagship, the Rajah Humabon, to protect the islands it has claimed in the Spratlys group from incursions by Chinese vessels.

The Spratlys and the Paracels are claimed in part or entirely by China and one or five other countries—the Philippines, Vietnam, Malaysia, Brunei and Taiwan.

The visit of Haixun-31 touched off a protest from Singapore, which has no claims in the disputed waters, and which demanded a clarification from China of the extent of its claims in the region. Singapore said China’s ambiguity was causing international concern.

The foreign ministry said that while Singapore had no claims of its own, it was a major trading nation whose interest could be affected by issues relating to freedom of navigation in the area.

The Philippines and Vietnam, of all the claimants, have expressed alarm over the increasing aggressiveness of Chinese incursions in areas claimed by Manila and Hanoi as part of their sovereign territories, and interventions in their explorations in the waters for oil and mineral resources.

Beijing refers to the body of water as the South China Sea (SCS), but Hanoi calls it the East Sea (ES) and Philippines called it West Philippines’ Sea (WPS).

Chinese stratagem – We will not use force if you will knee for our powerful armaments

Singapore was forced to protest not over the aggressive actions of China in the West Philippine Sea but over the trick with which the Chinese carried out the visit in the disguise of a harmless, long-arranged port of call by a civilian ship.

The visit by the Haixun-31, which belongs to China’s Maritime Safety Administration, annoyed Singapore over the fact that it took place amid rising tensions among countries with territorial claims in the West Philippine Sea.

China has come under increasing international criticism over its willingness to use force to pressure rival claimants in the West Philippine Sea to stop them from exploration activities in their claimed areas.

Singapore has criticized China for the ambiguity of its claims which are marked as nine dotted lines covering almost the entire West Philippine Sea. Independent experts point out that it is this U-shaped line that the Singapore government wants Beijing to clarify.

At a conference two weeks ago, Singapore’s former senior minister S. Jakamura said China should clarify its “puzzling and disturbing” nine-dotted lines map of the West Philippine Sea. He said the map had no apparent basis under the 1982 United Nations Convention on the Law of the Sea (Unclos).

Some academics say that according to maritime lawyers, the line is at odds with Unclos for which China proclaims its adherence to freedom of navigation but has not defined its claims under the UN convention.

China’s Offensive move over West Philippines’ Sea (WPS)

When China’s Maritime Safety Administration requested a port of call, it presented the request as a routine visit. It was supposed to be part of existing technical exchanges on marine safety and environmental protection between the two countries.

The visit turned out to be provocative when the ship sailed through disputed waters in the Spratlys and Paracel archipelagos where it could have encountered activities of the Philippines and Vietnam, which have denounced the Chinese incursions in the United Nations.

The aggressive Chinese intentions were revealed by Chinese media representatives embedded in the voyage.

They reported that the trip was to reinforce China’s sovereignty claims in the West Philippine Sea and to keep watch on foreign oil rigs and ships “in Chinese waters.” A reporter for China National Radio reported from the vessel as it set out from Guangdong province on June 15 that the purpose of the journey was “to protect China’s maritime rights and sovereignty.”

Explanation for U shape 9 dotted line - Unlawful

The next day, the People’s Daily, mouthpiece of the Chinese Communist Party, said the Haixun-31 had tasks “beside the usual inspections on routine navigation routes.” They included “checks on oil rigs, stationary ships’ operations in constructions and surveys, and sailors who are sailing close to Chinese waters.”

The report added: “The vessel will also conduct checks on foreign ships navigating, anchored and operating in Chinese waters.”

Sensing the potential for armed clashes posed by this maritime mission, which might encounter navigation activities and constructions in the West Philippine Sea, Singapore issued the statement:

“We think it is in China’s own interests to clarify its claims in the SCS (South China Sea) with more precision as the current ambiguity as to their extent has caused serious concerns in the international maritime community.

“Singapore is not a claimant state and takes no position on the merits or otherwise of the various claims in the SCS. But as a major trading nation, Singapore has a critical interest in anything affecting freedom of navigation in all international sea lanes, including those in the SCS.”

 

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