The 44-member strong Bankers Association of the Philippines assured depositors on Tuesday that the domestic banking system remains strong and stable and will not be impacted by any untoward developments overseas.
“The Bankers Association of the Philippines assures the Filipino public that recent developments in the US financial system have no substantial or material impact on Philippine banks,” the BAP said in a statement.
Last week’s collapse of Silicon Valley Bank and New York-based Signature Bank marked the biggest banking failures since the 2008 global financial crisis.
America’s top finance officials unveiled a series of measures over the weekend aimed at restoring confidence in the banking sector and settling turbulent markets.
The Treasury, the Federal Reserve and Federal Deposit Insurance Corp. set out plans to ensure SVB’s customers would be able to access all their deposits in the bank.
Signature Bank would also be “made whole”, they said in a joint statement on Sunday.
Bankers in the Philippines said local banks have diversified deposit bases that include all sectors of the Philippine economy, allowing them to continuously provide the liquidity needs of their clients.
“Additionally, banks in the Philippines continue to have capital and liquidity ratios that exceed the requirements set by the Bangko Sentral ng Pilipinas,” the BAP said.
“The prudential measures implemented by the BSP [Bangko Sentral ng Pilipinas] provide the necessary support that allows the Philippine banking system to withstand economic shocks,” it said.
The BAP said it continues to work with the BSP and other stakeholders to pursue reforms that will lead to an even stronger financial system that sufficiently provides the financial needs of the banking public.
The BAP is the lead organization of universal and commercial banks in the country with 44 member banks including 20 local banks and 24 foreign bank branches.