Banking
From The Report: The Philippines 2017
View in Online Reader

The Philippine banking system has been performing relatively well in recent years. Given the country’s strong economic growth, the sound regulation of the sector by the central bank and the global push towards increasing capital, the local institutions have been safe, sound and profitable. Major metrics are moving generally in the right direction. While many people in the country remain unbanked, the lack of inclusiveness is seen as providing an opportunity for expansion. The sector is now open to 100% foreign ownership, and international institutions have been entering the market in significant numbers.

This chapter contains interviews with Amando Tetangco, Governor, Bangko Sentral ng Pilipinas; and Alex Buenaventura, President and CEO, Land Bank of the Philippines.

Articles from this Chapter

Overview

Strong and sound: Sector records solid performance amid a push to expand penetration and reduce the number of banks
OBG
plus

The Philippine banking system has been performing relatively well in recent years. Given the country’s strong economic growth, the sound regulation of the sector by the central bank and the global push towards increasing capital, the local institutions have been safe, sound and profitable. Major metrics are moving generally in the right direction. While many people in the country remain unbanked, the lack of inclusiveness is seen as providing an opportunity for expansion. The sector is…

Interview

On the upswing: Amando Tetangco, Governor, Bangko Sentral ng Pilipinas (BSP), on reforms and fundamentals for a strong banking system
OBG
plus

Interview: Amando Tetangco How would you characterise the overall health of the Philippine banking sector? AMANDO TETANGCO: The Philippine banking system is sound and stable with sustained growth in assets, loans and deposits. Adequate liquidity levels, an improving loan portfolio quality, sufficient capitalisation and profitability are being maintained to support the growing domestic economy. We are pleased to note that the Philippine banking sector has developed into one of the most resilient…

Analysis

Legislative review: Amendments to laws addressing money laundering and financial crime are likely to follow the recent cybertheft
OBG
plus

The heist was audacious, complex and surprisingly successful. In early 2016 an attempt was made to steal almost $1bn of Bangladesh central bank money held at the US Federal Reserve via a Philippine bank, a Philippine remittance company and Philippine casinos. The theft, in which $81m was taken from the account, has significant implications both globally and locally. It is clear that safeguards at even the best-protected institutions in the world are far too weak given the sophistication…

Analysis

Opening the market: A number of foreign banks have entered the sector since 2014
OBG
plus

The Philippines has undertaken a wide range of banking reforms in recent decades, and the efforts have contributed to making the sector sound, stable and resilient. The one lingering issue has been foreign participation. For years the authorities offered only conditional access. In 2014 the doors were finally opened. A Long History A number of banks were allowed to fully participate in the market based on their historical presence in the country prior to 1948. These banks were Bank of America,…

Interview

Shifting practices: Alex Buenaventura, President and CEO, Land Bank of the Philippines, on lending to agriculture and fisheries
OBG
plus

Interview: Alex Buenaventura How can banks be more responsive to the needs of the agriculture and fisheries sector? ALEX BUENAVENTURA: In order to provide small farmers with easy access to sustainable banking and vertically integrated support services, our strategy in 2017 will be to pilot the creation of non-bank agri-business corporations using the corporative small farms consolidation and management services business model. This programme is crafted to not only provide further funding to agriculture,…