Philippine central bank: local banking system remains safe and sound

MANILA (Reuters) – The Philippine central bank said on Friday that the local banking system remains safe and sound, amid concerns over the potential for contagion stemming from banking turmoil affecting some overseas lenders.

“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,” it said in a statement. “Our banks do not have any material exposure to the failed institutions.”

The Bangko Sentral ng Pilipinas’ (BSP) reassurance followed Thursday’s statement from National Treasurer Rosalia De Leon who said Credit Suisse had “no significant exposure” to local bonds.

The Southeast Asian country’s largest lender, BDO Unibank, also said it had no exposure to the embattled lender.

“The BSP recognizes the actions taken by banking supervisory authorities to address the potential contagion risk from the closure of banks,” it said. “Nonetheless, we will respond accordingly as market conditions evolve.”

(Reporting by Enrico Dela Cruz and Neil Jerome Morales; Editing by Ed Davies)