Metro Manila (CNN Philippines, October 12) — The country’s thrift banks are well-placed to help achieve a more financially inclusive society for Filipinos, the Bangko Sentral ng Pilipinas said Tuesday.
“Thrift banks are strategically positioned to be a catalyst for financial inclusion with an extensive network of 2,744 banking offices as of end-August 2021 that are spread in different regions throughout the country,” said BSP Governor Benjamin Diokno during the first day of the Chamber of Thrift Banks Virtual Convention this year.
Diokno likewise cited the industry’s sustained growth in assets and deposits, strong capital position, adequate liquidity buffers and profitable operations which contributed to its “sound and stable” state amid the COVID-19 health crisis.
As of August, the thrift banking industry’s total assets stood at ₱1.19 trillion — a 7% year-on-year growth.
Meanwhile, deposit liabilities climbed by 8.8% to ₱940.8 billion during the period. The BSP chief said this was “highly indicative of the public’s continued trust and confidence in the industry.”
Thrift banks’ total capital reached ₱166.45 billion, rising by 4% from August last year. Their capital adequacy ratio also stood at 18.8%, well above the 10% minimum requirement set by the BSP.
“We are optimistic that the thrift banking industry is well-equipped to withstand the risk posed by the COVID-19 pandemic,” said Diokno, adding that the sector’s strong performance and country’s economic recovery will serve as a strong foundation for thrift banks under the new economy.
Diokno also cited the central bank’s efforts to further assist the industry, such as lowering the minimum liquidity ratio for standalone thrift, rural and cooperative banks from 20% to 16% until year-end.
He also encouraged thrift banks to avail of incentives under the Financial Institutions Strategic Transfer (FIST) Act to manage soured asset levels, raise liquidity, and support financial requirements of clients.
For his part, Chamber of Thrift Banks president Cecilio San Pedro affirmed they will keep fulfilling their mandate of coordinating their members’ efforts in line with the central bank’s goal of making the national financial system an “enabler for all Filipino people.”
“COVID-19 has accelerated customer demand for digital solutions as customers now expect an all-round service anytime and anywhere. There is now a need for the sector to strengthen its platforms, security, and service channels,” he said.
Source : From the Web