MANILA - The Bankers Association of the Philippines on Tuesday said the recent bank failures in the United States “have no substantial nor material impact on Philippine banks.”
The BAP gave this assurance following the collapse of several banks in the US, the most prominent of which was of Silicon Valley Bank (SVB).
“Banks have diversified deposit bases that include all sectors of the Philippine economy, allowing them to continuously provide the liquidity needs of their clients,” the BAP said in a statement.
The group said Philippine banks also have capital and liquidity ratios that exceed the requirements set by the Bangko Sentral ng Pilipinas.
Philippine banks can withstand economic shocks thanks to the prudential measures implemented by the BSP, the BAP said.
Stock markets across the world fell on Monday as investors worried over the possible fallout from the collapse of SVB.
US President Joe Biden on Monday sought to reassure Americans over the country's financial system as more US banks and leading European lenders were hammered amid contagion worries.
Japan said it will closely monitor developments in the financial markets and their impact on Japanese financial institutions amid concern about the risk of contagion and roiled global markets.
- With reports from Agence-France Presse and Kyodo News