PH banking system ‘safe and sound’ amid global financial concerns — BSP

Metro Manila (CNN Philippines, March 17) — The country’s central bank assured the public on Friday that the Philippine banking system remains “safe and sound” amid worries over the global financial network.

The Bangko Sentral ng Pilipinas (BSP) issued the statement after the United States recently saw the collapse of two of its major banks, Silicon Valley Bank and Signature Bank.

Meanwhile, Switzerland-based Credit Suisse also said it would borrow up to $53.7 billion (or around ₱2.9 trillion) from the Swiss National Bank, hoping to reassure investors that it had the necessary cash to stay afloat.

The BSP reiterated that Philippine banks do not have any material exposure to failed institutions outside of the country.

“We have shown our resilience through the pandemic, and we continue to be strong in the face of the ongoing turbulence in the global markets,” the BSP also said.

Nonetheless, the central bank noted that banking supervisory authorities have begun to address the potential contagion risk from bank closures, adding that it will also respond accordingly as market conditions evolve.

“Our longstanding efforts in consultation with the industry in setting prudent standards and executing risk practices remain the key pillar in safeguarding the interests of the Filipino people,” it said.