Bangko Sentral ng Pilipinas Governor Benjamin Diokno said Wednesday banks remain strong and well capitalized amid the continuing global COVID-19 pandemic.
“The Philippine banking system remains stable amid the COVID-19 crisis and in a strong position to service the financing requirements of the recovering economy,” Diokno said in an online briefing.
“The positive performance of the Philippine banking system is evidenced by sustained growth in its assets, deposits, and capital, as well as ample capital and liquidity buffers and loan loss reserves,” said Diokno.
Based on end-July 2021 preliminary data, banks’ total assets grew 5.4 percent year-on-year to P19.8 trillion.
Total loans declined by 0.4 percent year-on-year to P10.8 trillion as of end-July 2021. “Credit activity is expected to improve in the coming months amid the accommodative policy stance of the BSP, the national government’s accelerated vaccination program, as well as implementation of safety measures and granular lockdowns in the National Capital Region,” Diokno said.