MANILA – Philippine banks remain strongly capable of managing risks on their credit portfolio despite the non-renewal of broadcast giant ABS-CBN’s franchise, an organization of universal and commercial banks said Tuesday.
In a statement, the Bankers Association of the Philippines (BAP) said the domestic banking sector “remains strongly capitalized and in solid liquidity position to manage credit risks.”
The non-renewal of ABS-CBN’s franchise has sparked fears it would hurt the economy and investments.
“The prudential measures instituted by the Bangko Sentral ng Pilipinas allowed the banking industry to remain strong and healthy through the years that enabled the banks to withstand various crises,” it said.
The group said even amid the pandemic and the non-renewal of ABS-CBN's franchise, banks would continue to be "steadfast" as they are supported by "strong financial conditions, robust risk management systems, and good corporate governance.”
“Most importantly, we are confident that our member banks are prudent and take the welfare of their depositors at paramount importance. Your deposits are protected,” it added.
Last May 5, the National Telecommunications Commission (NTC) issued a cease and desist order against ABS-CBN to stop is broadcast operations after its legislative franchise expired on May 4. (PNA)
