US banks' collapse has 'no substantial impact' on PH banking system – BAP

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Metro Manila (CNN Philippines, March 14) — The recent reported failures of banks in the United States will have "no substantial or material impact" on the Philippine banking system, a bankers' group said Tuesday.

In a statement, the Bankers Association of the Philippines (BAP) allayed concerns over the recent developments in the US' financial sector, which include the sudden collapse of Silicon Valley Bank.

"Banks have diversified deposit bases that include all sectors of the Philippine economy, allowing them to continuously provide the liquidity needs of their clients," the BAP said.

"Additionally, banks in the Philippines continue to have capital and liquidity ratios that exceed the requirements set by the Bangko Sentral ng Pilipinas (BSP)," it added.

The BAP also said current measures implemented by the BSP will give the "necessary support to allow the Philippine banking system to withstand economic shocks."

Silicon Valley Bank — one of America's largest commercial banks and a top lender to the tech industry — collapsed on Friday after customers yanked deposits in a classic bank run.

It has been described as the largest lender to fail since 2008.

EXPLAINER: Why Silicon Valley Bank collapsed and what it could mean

Meanwhile, the BAP said it will continue to work with the central bank and other stakeholders on possible reforms that will further boost the country's financial system.