BSP: PH Banking System ‘Safe and Sound’ Following US Banking Collapse

The Bangko Sentral ng Pilipinas (BSP) released a statement assuring the public that the country’s banking system is secure amid the bank collapse that the United States (US) is facing.

“The Philippine banking system remains safe and sound,” the statement said.

Medalla also added that the banking industry in the Philippines has been resilient through the challenges of the past few years such as the pandemic, global market headwinds, and the collapse of several American banks as the US government had to step in.

“We have shown our resilience through the pandemic, and we continue to be strong in the face of the ongoing turbulence in the global markets.,” the BSP statement added.

The statement comes after the recent collapse of Silicon Valley Bank (SBV), the second-largest bank failure in the US to date, following a bank run. The collapse of New York-based Signature Bank has also raised concerns.

Meanwhile, BSP also recognized the actions taken by banking supervisory authorities to address the potential contagion risk from the closure of banks.

BSP added that it will respond accordingly as market conditions evolve and also noted that the banking industry in the Philippines does not have any material exposure to the failed institutions. (GFB)