The Bangko Sentral ng Pilipinas (BSP) said banks remain resilient and capable of withstanding potential shocks after Fitch Ratings lowered its outlook on the Philippine banking sector to “deteriorating.”
In a statement, the BSP said it continues to closely monitor risks to credit quality, profitability, liquidity and capital adequacy, while noting that banks have ample liquidity, adequate capital buffers and manageable asset quality.
The central bank said that while “some pressure may emerge in specific borrower segments,” risks remain contained and “there is no evidence of broad-based deterioration.”
It also expects lenders to maintain prudent credit standards, adequate provisioning, strong governance, and sufficient capital and liquidity buffers.
“The BSP stands ready to take appropriate supervisory action, as needed, to preserve financial stability and protect the public,” it said.
