The Bangko Sentral ng Pilipinas marks its 30th year with a banking system that is sound, stable and liquid.
By the end of 2022, the Philippine banking system’s assets stood at P23,047.7 billion, up by 10.7 percent year-on-year. Over the same period, gross total loan portfolio grew by 10.8 percent to P12,625.1 billion. The Philippine banking system also remained well capitalized and managed to keep its exposure to bad debts low. As of end-2022, capital adequacy ratio on solo and consolidated bases stood at 15.7 percent and 16.
Financial stability is also exhibited when risks that affect the entire financial system, rather than just an individual bank or entity are properly managed. An example would be an economic shock that causes a rise in loan defaults.In response to the 1997 Asian financial crisis, the BSP changed its approach to banking supervision. Instead of simply ensuring compliance, the BSP focused on the ability of banks to measure and manage risks.
Further, Republic Act No. 10641, or An Act Allowing the Full Entry of Foreign Banks in the Philippines, helped foreign banks enter the market, resulting in a more competitive banking environment. Digital platforms—supported by a regulatory environment that ensures responsible innovation and cyber resilience—play an important role in making financial products and services more accessible to underserved markets. Toward this end, the BSP has developed a framework for digital banks that serve their customers via online channels with no physical branches.
In addition, the BSP places significant emphasis on consumer protection, considering it an integral component of corporate governance, culture, and risk management. To ensure effective supervisory oversight, the BSP adheres to global standards and constantly engages with stakeholders to implement reforms.
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