Bangko Sentral ng Pilipinas Governor Benjamin Diokno said Friday foreign banks operating in the country remain stable and well-capitalized and continue growing amid the current global health crisis.
Diokno said in an online briefing the capital adequacy ratio of foreign banks—a measure of financial strength—stood at 27.5 percent as of end-March this year, well above the BSP’s threshold and the international standard.
Their assets, loans, and deposits at end-April this year represented a 32-percent, 23.4-percent, and 43.4-percent increase, respectively, from figures in 2014, the year when Republic Act 10641 further liberalized the entry of foreign banks.
“There are now 29 foreign banks operating in the Philippines accounting for seven percent of the total assets of the Philippine banking system. This indicates that there is room for foreign bank branches and subsidiaries to expand their balance sheet and operations,” Diokno told reporters.
“The BSP recognizes the steady growth of foreign banks and their ability to contribute to the country’s road to recovery,” he said.