PARIAH
MANILA, JANUARY
2, 2012 (MANILA TIMES) GLOBAL executives are considering
investing in Southeast Asia, except in the Philippines, according to a
consulting firm's international survey.
In its 2012 Foreign Direct Investment Confidence Index, A.T. Kearney said the
Philippines was excluded from the top 25 economies considered attractive FDI
destinations this year.
Neighboring countries like Singapore placed 7th; Indonesia, 9th; Malaysia,
10th; Vietnam, 14th; and Thailand, 16th. The most attractive countries are
China, India, Brazil, the US, Germany and Australia.
The FDI index examines future prospects for investment flows as the world
seeks to recover from the global recession and continued economic uncertainty in
Europe and the United States.
Respondents in the survey include C-level executives and regional and
business heads. Participating companies represent 27 countries and span 17
industry sectors and account for more than $1 trillion in annual global sales.
The survey was conducted between July and October 2011.
"We find that FDI flows have picked up slightly in the past two years as
investors cautiously reenter the markets. However, this modest optimism could
quickly revert to retrenchment as investors weigh potential upside opportunities
against downside risks," AT Kearney said.
The report added that the prospects for near-term recovery are still shaky
more than three years since the onset of the global economic crisis, and debt
crises loom large. With prospects for near-term economic recovery increasingly
uncertain, AT Kearney said FDI flows may not see the pickup that the world was
hoping for any time soon.
"The timing and location of renewed investment will play a major role in the
future global economic landscape. Emerging markets are poised to benefit from an
FDI recovery, as they comprise more than half of the FDI Confidence Index's top
25 countries. They are attracting investment on their own merits, most
importantly their large and growing consumer markets," the report added.
The report, which first appeared in 1998, assesses the impact of political,
economic, and regulatory changes on the FDI intentions and preferences of the
leaders of top companies around the world.
Lower rates may pressure banks' margins Published
: Monday, January 02, 2012 00:00 Article Views : 101 Written by : Lailany P.
Gomez MANILA TIMES
The Bangko Sentral ng Pilipinas said banks' margins could be under pressure
this year mostly because of lower interest rates.
"At low levels of interest rates, there could be pressure on banks to achieve
profitability through increased trading gains. There may also be temptation for
them to chase after yields," BSP Governor Amando Tetangco Jr. said.
The policy-making Monetary Board has been maintaining its policy rates at 4.5
percent for the overnight borrowing and 6.5 percent for the overnight lending
since May.
The Board's decision was based on its assessment that the inflation outlook
continued to be manageable, with within-target headline inflation and
well-contained inflation expectations.
Latest baseline forecasts indicated that the annual inflation rates for 2011
to 2013 were likely to fall within the 3-percent to 5-percent target range.
"Given these, the BSP actively monitors the exposures of banks to ensure that
they remain safe and sound," Tetangco said.
Data from the BSP showed that as of the first half of 2011, consolidated net
profits of the banks grew by 28 percent to P51.9 billion from P40.6 billion in
the same period in 2010.
Similarly, total resources grew by 11.5 percent to reach P7.018 trillion in
the first half from P6.295 trillion recorded a year ago. Total resources
remained funded by deposit liabilities (73.5 percent) and owner's capital (12
percent).
Core lending—total loan portfolio net of interbank loans and reverse
repurchase with BSP and other banks—posted a double-digit growth of 17.1 percent
to P3.043 trillion from P2.599 trillion a year ago. The BSP said that the growth
was almost twice the recorded expansion of 8.5 percent last year.
Moreover, banks' have improved loan and asset quality, with key rations back
of their pre-crisis levels as non-performing loan ratio further eased to 3.1
percent from year ago's 3.9 percent. NPA ratio, meanwhile, also improved to 3.6
percent from 4.4 percent a year ago. This was backed by adequate loan loss
provisioning, the BSP said.
"Over the years, the BSP has put in place various regulations that require
banks to improve risk management practices and infrastructure, including the
adoption of ICAAP to help ensure that banks allocate sufficient capital for risk
activities undertaken," Tetangco said.
To maintain market confidence, enhance openness in financial transactions and
mitigate systemic liquidity risks, the BSP said it will continue to upgrade the
banking system's compliance with international standards and best practices
following the early adoption of the Basel III.
The BSP is also promoting financial stability through periodic stress tests,
industry consolidation and closure of weak financial institutions.
"The Philippines has stayed above the fray of global difficulties because our
banks have the discipline of maintaining credit standards and being cognizant of
evolving risks. We expect no less moving forward," Tetangco said.
Chief News Editor: Sol Jose Vanzi
© Copyright, 2012 by PHILIPPINE HEADLINE NEWS ONLINE
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