The banking system in the Philippines is one of the most stable in Asia Pacific region, according to global debt watcher Moody’s Investor Service.
The domestic banking system got stable outlooks in the areas of operating environment, asset quality, capital, funding and liquidity, profitability and efficiency and government support.
“Our outlooks for APAC banks are increasingly stable amid supportive operating conditions. Seventy-seven percent of bank rating outlooks in APAC are now stable, up from 64 percent at end-2016,” Moody’s said.
“Macroeconomic conditions have stabilized in most APAC countries and improved in some parts of the region, easing asset quality risks,” Moody’s said.
Overall, the Philippines, Malaysia, Sri Lanka, Vietnam, Thailand and India got stable outlooks. Indonesia got positive outlook while China had negative outlook. “China’s small and medium-sized banks face increasing funding pressure due to their high, and rising, levels of reliance on market funding,” Moody’s said.
