PH financial system report released

The BSP releases the Enhanced Report of the Philippine Financial System for the first semester of 2018 showing a sustained growth momentum.

This is due to proactive implementation of financial sector reforms, strong macroeconomic fundamentals, and positive investor sentiment.

The Philippine financial system, with the banking system at its core, continues to provide financial intermediation to further boost the domestic economy. The Report includes a new section on Financial Soundness of the Philippine Banking Sector which provides a comprehensive analysis of the soundness of the Philippine banking system. The section based on the analysis of capital adequacy, asset quality, earnings, liquidity and sensitivity to market risk (“CAELS Analysis”) notes that while the banking system remains stable, the BSP will continue to monitor incipient risks to the System.

The Financial Supervision Sector’s Surveillance Loop and Early Intervention Framework will provide guiding frameworks for supervisors in monitoring banks’ risk management.

Other enhancements in the Report pertains to the inclusion of two technical box articles on factors driving the behavior of deposit interest rates and impact of macro- and bank-specific factors on the loan quality of banks. /