By Francis Allan L. Angelo
The Bangko Sentral ng Pilipinas (BSP) has released its Report on the Philippine Financial System for the Second Semester of 2023, highlighting the robustness of the financial system amid ongoing macroeconomic challenges and its significant role in supporting the country’s economic recovery.
The total assets of the banking sector grew by 9.2 percent to ₱25.2 trillion, accounting for 83.3 percent of the total resources within the Philippine financial system.
According to the report, banks maintained strong balance sheets and profitability throughout the year.
Additionally, capital and liquidity buffers were reported to be well above the minimum regulatory requirements set by BSP and international standards, helping to shield the sector from unforeseen market shocks and volatility.
BSP Governor Eli M. Remolona, Jr. emphasized the sector’s vital role, saying, “The continued health and stability of the Philippine financial system is a cornerstone to inclusive and sustainable growth of the Philippine economy.”
The report also shed light on the performance of non-bank financial institutions, which have shown solid performance in delivering essential financial products and services to underserved and unserved market segments through an extensive nationwide network.
Further aspects covered in the BSP report include the operations of foreign bank branches and subsidiaries, foreign currency deposit units, and trust entities. It also discusses thematic box articles that outline key developments and policy reforms undertaken in 2023 aimed at fostering a safe, sound, and resilient financial system.
The BSP has expressed its commitment to continuous financial sector reforms to align the Philippine financial system with the global trends of rapid digital transformation and sophistication.
“The BSP reaffirms its collaborative stance to work closely with relevant stakeholders in implementing meaningful and broad-based financial sector reforms dedicated to the sustained dynamism, resilience, inclusiveness, and sustainability of the financial system,” the report noted, underlining the objective to contribute to equitable economic prosperity for more Filipinos.
