Philippines not vulnerable to financial crises for now — report

The Philippines is not expected to face a financial crisis in the next few years, but possible interest rate shocks and climate change risks could pose a big threat to the country’s financial stability.

Japan-based investment firm Nomura counts the Philippines as among the economies not at risk of a financial meltdown over the next 12 quarters based on its recently released “Cassandra” report.

Designed as an “early warning model” for financial crises, Nomura’s Cassandra report — named after a priestess of Apollo in Greek mythology who foresaw the destruction of the city of Troy — tracked 40 economies, with a score that exceeds 100 interpreted as a warning that the country is vulnerable to a financial crisis.

The report gave the Philippines a Cassandra score of zero.

The Nomura report said, “Cassandra correctly signaled two-thirds of the past 53 crises in our sample of 40 countries since the early 1990s.”

Source: https://www.philstar.com/business/2021/06/24/2107820/philippines-not-vulnerable-financial-crises-now-report

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