Philippine financial system 'resilient' despite global headwinds: stability council

The system is supported by sound capital and liquidity positions, the council said.

The Philippine financial system remains resilient despite a challenging global environment, according to the country’s Financial Stability Coordination Council (FSCC).

The financial system continues to be supported by sound capital and liquidity positions, and prudent risk management, the council said in an announcement on 15 September 2026.

The FSCC said that it is taking steps to further boost its ability to identify emerging vulnerabilities early and increase the financial system’s capacity to manage potential shocks, such as enhanced monitoring of non-bank financial intermediaries, it said.

The FSCC also plans to improve data collection and information sharing amongst its members.

“The FSCC aims to proactively address risks through close monitoring, timely information sharing, and robust coordination among its members,” FSCC Chairman and BSP Governor Eli M. Remolona, Jr.

In a separate report, S&P Global Ratings said that the Philippine banking sector faces weaker credit growth but should be resilient even if bad loans double.

Two midsize banks could make a pretax loss in a severe stress scenario, accordign to S&P.