Bangko Sentral ng Pilipinas Governor Benjamin Diokno said Friday servicing debts and credit-related risks are the primary concerns in the financial market amid the prolonged impact of the COVID-19 pandemic.
Diokno issued the statement on the state of financial stability in the country in behalf of the Financial Stability Coordination Council which he chairs. The statement followed the May 18 meeting of the FSCC.
Diokno said six of the 11 risk areas being monitored were classified as under control. These include risks to monetary policy, risks to fiscal policy, contagion risk, concentration risk, liquidity risk and geo-political risk.
“However, servicing debts and credit-related risks are the primary concerns in the financial market today,” Diokno said in an online briefing.
“COVID-19 has created similar problems throughout the world and the loss of incomes is the most common scar from this pandemic-cum-recession,” he said.
“This has left borrowers vulnerable because their capacity to service their debts has been put at risk,” Diokno said.
