The Bangko Sentral ng Pilipinas (BSP) on Thursday welcomed a report from Japan Credit Rating Agency (JCR) that underscores the strength and stability of the country’s banking system.
JCR cited the Philippines’ stable financial system as a key factor behind its “A-” investment-grade credit rating with a “stable” outlook.
The agency also noted strong loan growth, a lower non-performing loan ratio and capital adequacy ratios that are “well above” both Philippine and international standards.
“The BSP continues to implement policies that promote robust capitalization and sound risk management among banks,” BSP Governor Eli Remolona Jr. said in a statement.
“These support financial stability and further build confidence in the domestic financial system,” he said.
The capital adequacy ratio of universal and commercial banks stood at 16.5 percent on a consolidated basis, according to the latest data. The non-performing loan ratio also declined to 3.1 percent at the end of July 2025, from 3.6 percent in 2021.
JCR’s report also cited the country’s easing inflation and robust gross international reserves (GIR).
Inflation averaged 1.7 percent in the first eight months of the year, while the GIR reached $105.9 billion at the end of August 2025.
The GIR is equivalent to 7.2 months of imports and 3.4 times the country’s short-term external debt.
An investment-grade rating reflects low credit risk, which helps to lower borrowing costs for the government. This in turn allows the government to channel more resources toward social programs.
 welcomes a report from Japan Credit Rating Agency (JCR) highlighting the country's strong financial system, robust loan growth, and low non-performing loans, key factors behind its investment-grade rating.){kind=link}