The Bangko Sentral ng Pilipinas (BSP) recently issued its Report on the Philippine Financial System for the second semester of 2023, highlighting the Philippine financial system’s resilience amidst macroeconomic uncertainties while supporting the country’s economic recovery and growth.
IMAGE CREDIT: www.bsp.gov.ph
The report covers the performance of foreign bank branches and subsidiaries, foreign currency deposit units of banks, and trust entities, as well as thematic articles highlighting key developments and BSP policy reforms implemented in 2023.
“The continued health and stability of the Philippine financial system is a cornerstone to the inclusive and sustainable growth of the Philippine economy,” said BSP Governor Eli M. Remolona, Jr.
Other key points from the report include:
- The banking sector’s total assets increased by 9.2 per cent to ₱25.2 trillion, comprising 83.3 per cent of the total resources of the Philippine financial system.
- The banks maintained strong balance sheets and profitable operations throughout 2023, with sufficient capital and liquidity buffers to withstand unforeseen shocks and market volatility.
- Non-bank financial institutions also performed well in 2023, playing a vital role in providing essential financial products and services to underserved market segments throughout the country.
- Collaboration with stakeholders is integral to implementing comprehensive reforms that are aimed at promoting the dynamism, resilience, inclusiveness, and sustainability of the financial system, ultimately fostering equitable economic prosperity for all Filipinos.
- BSP Governor Eli M. Remolona, Jr. emphasized the importance of a healthy and stable financial system in driving inclusive and sustainable economic growth.
- The BSP remains committed to advancing progressive financial sector reforms to align with the rapid digital transformation and sophistication of the global financial services industry.
The Report on the Philippine Financial System is a biannual document crafted by the Supervisory Policy and Research Department of the Financial Supervision Sector (FSS) within the BSP. It is also mandated by Section 39(c), Article V of the Republic Act (R.A.) No. 7653, also known as “The New Central Bank Act,” as amended by R.A. No. 11211, and other relevant legislation. The BSP governor submits it to the President and Congress.
To know more about the report, check out this link: https://www.bsp.gov.ph/Lists/Report%20on%20the%20Philippine%20Financial%20System/Attachments/32/StatRep_2Sem2023.pdf