PH banks seen to remain robust vs. recession, rate hike shocks

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PH banks seen to remain robust vs. recession, rate hike shocks
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Philippine banks remain generally strong to the impact of the rising interest rates and a possible recession but smaller ones need policy support due to their vulnerability to shocks, the Asean+3 M…

Philippine banks remain generally strong to the impact of the rising interest rates and a possible recession but smaller ones need policy support due to their vulnerability to shocks, the Asean+3 Macroeconomic Research Office said.

Results of the stress test showed that baseline non-performing loan ratio of the banks would be around 2.93 percent, while capital adequacy ratio would be around 16.56 percent. The commentary said the Bangko Sentral ng Pilipinas has identified banks considered as systematically important to address any systemic risks in the domestic banking sector.

The commentary said the central bank “can offer help in designing a recovery and resolution plan for small and medium-sized banks.”

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