Bangko Sentral ng Pilipinas Governor Benjamin Diokno said Wednesday the implementation of prudent reforms will enable banks to have a manageable level of non-performing loans in the coming months.
Diokno said in a presentation during the Development Budget Coordination Committee hearing at the Senate that banks continued to rein in the NPL ratio within manageable level amid the pandemic, reflecting gains from prudent reforms and improvements in banks’ credit risk management systems.
He said the non-performing loans ratio of the banking system increased to 4.5 percent, while the NPL coverage ratio of the banking system declined to 82.4 percent in June.
“Moving forward, the BSP anticipates that the non-performing loans of the banking system will remain within manageable levels. The existing regulatory relief measures serve as an interim measure pending the full operationalization of the FIST Act in 2021,” he said.
