The Bangko Sentral ng Pilipinas assured the public the Philippine banking system remains sound and well-capitalized, with no emerging risks seen to pose problems moving forward.
BSP Governor Benjamin Diokno said the central bank remains proactive in monitoring the health of the financial system to determine if there are threats emerging.
According to the BSP chief, the banking community remains “sound and well-capitalized” even amid the COVD-19 crisis owing to reforms implemented by the central bank. These were a result of the lessons learned by the BSP during the 1997 Asian financial crisis.
Diokno said, “(The banking industry’s) capital adequacy ratio hovers at around 15 to 16 percent. That is much higher than the BSP prescribed 10 percent, and even higher than the internationally prescribed eight percent.”
He said the non-performing loan ratio of banks remains manageable and significantly lower than during the Asian Financial Crisis.