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Philippine financial system resilient despite global banking issues: WB

The World Bank reported that the Philippine financial system has remained resilient despite global banking sector issues. The country’s financial system is well-capitalised, with no material exposure to recently failed banking institutions, and with sufficient capital and liquidity buffers. The report also highlights that the country's financial sector resilience is due to its improved asset quality, and that its non-performing loan (NPL) ratio has returned to pre-pandemic levels. The Bangko Sentral ng Pilipinas Governor previously said that Philippine banks are not exposed to failed US banks, as foreign currency deposit units’ assets are mostly loans and Philippine dollar bonds and sovereign bonds of countries with high credit ratings. The central bank is prepared to withstand possible shocks, having implemented structural reforms such as the adoption of risk management standards and prudential limits and requirements.

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