Bank chiefs have 'stable' outlook on industry: BSP poll

ABS-CBN News

Posted at Oct 03 2018 03:23 PM

MANILA -- Nearly 7 in 10 of bank heads in the Philippines have a stable outlook on the sector, indicating how the industry will help aid economic growth, a central bank survey released Wednesday showed.

Based on the Bangko Sentral ng Pilipinas' Banking Sector Outlook Survey, 66.7 percent consider have "stable" outlook, while 33.3 percent expect a "stronger" system in the next 2 years.

The maiden poll, which covered the first first trimester of 2018, included 114 bank presidents, country managers and CEOs.

The respondents cited the country's strong macroeconomic fundamentals and adequate liquidity for their positive outlook.

"Bullish outlook implies that banks will continue to support the sustained development of the national economy," the BSP said in a statement. 

Eighty one out of 114, or 71.1 percent of respondents plan to use technology in the next 2 years, specifically in cybersecurity enhancements and consumer protection.

However, "concerns" were also raised, including the BSP's reportorial requirements and regulations on anti-money laundering. This shows that banks are "aware" and are addressing risks, the BSP said.

"This resonates with the BSP’s overarching policy objective to promote a stable and sound banking system that is globally competitive, dynamic and responsive to the demands of a developing economy," it said. 

-- with a report by Michelle Ong, ABS-CBN News