The banking system’s asset base has been expanding steadily, supported by sustained growth in deposits. As of end of April 2009, the total resources of the banking system stood at P5.8 trillion. Banks have been offloading their non-performing assets and problem loans. As a result, the NPL ratio is now at the pre-Asian crisis level of around 4.0 percent.
I agree with those who say that too much subjectivity will foster “gaming of the system”. In order to control this subjectivity, I would welcome that the new IASB standard, IFRS 9, clearly defines those relevant forward-looking elements.