The country’s banking system was stable amid the global pandemic, the Bangko Sentral ng Pilipinas (BSP) pointed out on Thursday.
At the virtual inaugural meeting of the Management Association of the Philippines (MAP), BSP Governor Benjamin Diokno said the local banking system had “remained strong” despite the pandemic.
The central bank, in a separate statement, noted that preliminary data showed total banking system assets rose 7% year-on-year at the end of November to 20.4 trillion pesos.
BSP said assets grew while deposits rose 9.2% to 15.8 trillion pesos year-on-year. Loans also rose 4.3% in November, reversing their contraction of 0.1% a year ago.
Non-performing loans (NPLs), on the other hand, were manageable and in line with expectations, according to BSP, with the PBS gross NPL ratio standing at 4.3%.
The figure is up from 3.8% a year ago, but down an inch from 4.4% in October last year.
Diokno added that the banks have sufficient capital reserves and liquidity.
“Capitalization remained abundant, with the capital adequacy ratio remaining well above the BSP’s minimum 10% requirement and the 8% prescribed by the Bank for International Settlements,” Diokno said in his speech at the the MAP event.
The liquidity coverage ratio of universal and commercial banks was also above the minimum threshold of 100%, according to the governor of the BSP.
“For the year 2022, PASB will continue its reform agenda to ensure a safe, sound, and resilient financial system that supports the country’s recovery as well as its balanced, inclusive, and sustainable economic growth,” Diokno said in the separate statement. .