MANILA - The Bankers Association of the Philippines said Tuesday banks were in a solid position to manage credit risks despite the persisting crises in the country.
The "prudential measures" imposed by the Bangko Sentral ng Pilipinas allowed the banking industry to remain strong and healthy to withstand "various crisis" such as the coronavirus pandemic and the non-renewal of ABS-CBN franchise, BAP said in a statement.
"In the midst of today's pandemic and concerns on the non-renewal of the ABS-CBN broadcast franchise, we strongly believe that banks will continue to be steadfast as they are supported by strong financial conditions, robust risk management systems and a good corporate governance," it said.
"We are confident that our member banks are prudent and take the welfare of their depositors at paramount importance. Your deposits are protected," it added.
The Philippine economy could sustain P1.1 trillion in losses due to the coronavirus pandemic and the resulting lockdown, acting Socioeconomic Planning Secretary Karl Kendick Chua said in April.
Several economists earlier warned that the lawmakers’ decision to deny ABS-CBN a new broadcast franchise will have a negative impact on the economy and on investor confidence while Fitch Solutions said it could weigh on foreign investments.
The Bangko Sentral ng Pilipinas cut the benchmark borrowing rate by a cumulative 175 basis points this year to 2.25 percent while the reserve requirement for banks was reduced to 12 percent.
BSP Gov. Benjamin Diokno earlier said the BSP was helping banks so that the banks could lend aid to small firms as well as the consumers.