PH banking system 'sound, resilient' amid SVB collapse: Medalla


Posted at Mar 16 2023 09:21 AM

MANILA - The Philippine banking system is sound and resilient with no reported exposure to the embattled Silicon Valley Bank, Bangko Sentral Gov. Felipe Medalla said Thursday.

US regulators earlier took control of SVB -- a key lender to US startups since the 1980s -- after a run on deposits made it no longer tenable for the medium-sized bank to stay afloat on its own. SVB's collapse triggered contagion fears in the US. 

"The Philippine banking system has no reported exposures to the Silicon Valley Bank (SVB). The PBS continues to exhibit safety, soundness, and resilience amid the collapse of SVB and two other banks in the US," Medalla said in a statement. 

Medalla said the central bank conducted stress tests that showed banks' capital "would hold under extreme stress scenarios."

"Nonetheless, the BSP will continue to monitor the developments both in the international and domestic markets as part of its surveillance activities."

The Bankers Association of the Philippines earlier said the recent bank failures in the US "have no substantial nor material impact on Philippine banks.”


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