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By Niña Myka Pauline Arceo
THE Bangko Sentral ng Pilipinas (BSP) on Monday reiterated the stability of the Philippine banking system following the collapse of two US banks.
Local banks are "strong and prepared to withstand possible shocks" and also have asset bases significantly different from those of US banks, the BSP said in notes sent to President Ferdinand Marcos Jr.
Philippine banks, in particular, were said to:
• mostly hold loans that are less susceptible to changes in fair value;
• have lower market risk exposure compared to US banks;
• maintain a diversified lending base and manageable loan quality;
• have strong risk governance and risk management systems;
• be highly liquid and tend to rely on a wide depositor base; and
• not have material exposure to the failed banks.
