The country’s central bank assured stakeholders from Central Luzon that the Philippine banking system is now in a very sound footing.
In his presentation during the recent Philippine Economic Briefing, BSP Governor Nestor Espenilla Jr. stressed that it has become a very stable and reliable anchor for the economy which is a by-product of deep and meaningful financial reforms that the government boldly implemented during the 1997 Asian Financial Crisis.
According to the central bank official, key performance indicators show double-digit growth in assets funded by sustained growth in deposits, expansion in lending, improved asset quality, profitable operations and more than adequate capitalization.
“The Philippine banking system is in a position of strength that enables it to meet funding requirements of the growing economy while maintaining strong, healthy buffers against risks,” said Espenilla.
The official emphasized that the country’s economic fundamentals have continuously improved despite the very challenging global economic landscape.
“Among these challenges that triggered episodes of financial market disturbances are geo-political risks, threat of protectionist policy, inflationary pressures and uncertainty in pace of US Fed policy normalization, among others,” he enumerated.
However, despite these challenges and risks, Espenilla stressed that the government remains optimistic that the next six years will be a story of growth and development for the country because of factors like young and active population, ample liquidity and strong credit dynamics, and bullish investor and consumer sentiments, among others. (CLJD/MJLS-PIA 3)
