The biggest banks in the Philippines remain on solid footing, armed with sufficient capital and stable funding required to support operations amid the onslaught of the novel coronavirus disease pandemic, according to the Bangko Sentral ng Pilipinas.
BSP Governor Benjamin Diokno said domestic systemically important banks – or those considered as too-big-to-fail banks – continued to outpace the growth of the overall banking system in terms of assets, loans and deposits.
Too-big-to-fail banks are banks whose distress or disorderly failure would cause significant disruptions to the wider financial system and economy.
Diokno said preliminary data from the BSP showed the assets of D-SIBs grew by 6.2 percent in the first quarter, slightly faster than the 5.6 percent rise recorded by the entire banking sector.
Likewise, he said the deposit base of too-big-to-fail banks went up by 8.5 percent, faster than the industry’s 7.8 percent.