The Bangko Sentral ng Pilipinas (BSP) released the Report on the Philippine Financial System for the First Semester of 2021. The Report underscored the sustained resilience of the Philippine financial system amid the COVID-19 pandemic.
The assessment of the strengths and sources of vulnerabilities of the Philippine Banking System (PBS) based on a set of Financial Soundness Indicators (FSIs) suggested that the banking system remained sound and stable even during the health crisis.
BSP Governor Benjamin E. Diokno said, “In the first semester of 2021, the banking system displayed continued growth in assets and deposits and posted sufficient capital and liquidity buffers. This enabled the banking system to support the country’s financing needs.”
“The acceleration of digital transformation reinforced banks’ continued delivery of financial products and services during the pandemic,” the Governor added.
The Report likewise highlighted the satisfactory performance of the foreign currency deposit system, trust entities, quasi-banks, and other non-bank financial institutions during the period under review.
Given the continuing uncertainty posed by the global pandemic, the BSP will continue to monitor risks and vulnerabilities that may put undue pressure on the financial system.
The comprehensive analysis will be complemented by initiatives aimed at strengthening risk governance, promoting responsible innovation, and advancing the sustainability agenda in the Philippine financial system. (BSP)-rir