​The BSP Book on Risk and Resilience in the Philippine Financial System: How Much Has Changed? Chapter 1: Risk and Resilience in the Philippine Financial System: An Overview

Ramon Moreno and Veronica Bayangos
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Ramon Moreno: Bangko Sentral ng Pilipinas
Veronica Bayangos: Bangko Sentral ng Pilipinas

BSP Special Publications from Bangko Sentral ng Pilipinas

Abstract: This chapter discusses how the Philippine financial system’s resilience to crises strengthened from the 1970s to the 2020s. It links the impact of shocks from the early 1980s to the COVID‑19 pandemic to changes in macro buffers (public and external debt, reserves) and bank‑credit cycles. The severity of early crises reflected weak buffers, heavy external borrowing, regulatory gaps, and the buildup of unexpected risks. Later shocks were softened by fiscal consolidation, stronger regulation and supervision, and higher capital and liquidity. The chapter also explains how reforms and internal corporate capital markets appear to have helped banks and conglomerates manage NPLs and funding stress, but notes that shallow capital markets, complex conglomerate structures, and weak infrastructure governance could still challenge resilience.

Pages: 30 pages Creation Date: 2026-07
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Published as a BSP Special Publication, July 2026

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https://www.bsp.gov.ph/SiteAssets/Pages/FinancialS ... 03%20June%202026.pdf

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Persistent link: https://EconPapers.repec.org/RePEc:bhd:spcpub:ch-01

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