Philippine Financial System: Sound and Stable in 2022

In its Report on the Philippine Financial System for the Second Semester of 2022, the Bangko Sentral ng Pilipinas (BSP) highlights that the Philippine financial system sustained positive performance and overall stability amid a challenging macroeconomic environment in 2022.

The Philippine banking system, as the core of the financial system[1], likewise remained sound and stable with continued growth in its assets, loans, deposits, and profit, as well as ample capital and liquidity buffers and provision for credit losses.

“As the economy continues to recover, we expect the overall key performance indicators of banks to further improve and move closer to pre-pandemic levels. This will place banks in a stronger position to support domestic recovery,” BSP Governor Felipe M. Medalla said.

The Report also features the performance of foreign bank branches and foreign bank subsidiaries, foreign currency deposit unit of banks, trust entities, and other BSP-supervised non-bank financial institutions.

Moving forward, the BSP will continue to pursue strategic reforms that will promote risk governance, digital transformation, and sustainability in the financial system. These efforts, together with BSP’s collaborative partnerships with other key stakeholders, will help promote a resilient, dynamic, and inclusive financial system that is supportive of sustainable economic growth.

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[1]  As of end-December 2022, total assets of the Philippine banking system represented 82.8 percent of the total resources of the Philippine financial system.