PESO DEPRECIATION, rising interest rates, and high inflation swayed financial markets in the Philippine landscape in the third quarter, indicating a gloomy outlook for the rest of the year.

LISTED BANKS saw their loan books increase in the third quarter as the economy further reopened but analysts warned the massive rate hikes to curb multi-year high inflation could dampen this next year.

MORE than two years since the coronavirus pandemic struck, the country’s banking system has not been left unscathed. Amid the geopolitical uncertainties, surging commodity prices, and rising interest rates, a couple of foreign banks opted to leave the country.

KAMILA O. PARAS, a 59-year-old local government unit employee, was one of the few Filipinos that got cold feet when it comes to credit.

WITH THE EXITING of retail banks in the country that offers digital banking services, Filipinos have been looking for other banks to transfer to.

DOMESTIC financial markets may see a lukewarm performance in the remaining months of the year as major central banks around the world grapple to tame inflation.

RISING INTEREST RATES and further reopening of the economy brought strong earnings to listed banks in the second quarter.

AS THE PHILIPPINES starts to recover from the pandemic-caused recession, the Bangko Sentral ng Pilipinas (BSP) plans to hike the minimum capital requirement of rural banks in a bid to strengthen and enhance the capacity of these small lenders which could spell the doom for some of them.

In recognizing the part of the banking industry to pursue sustainable financing or green financing in the country, the Bangko Sentral ng Pilipinas (BSP) has released the Philippine Sustainable Finance Roadmap and Sustainable Finance Guiding Principles to serve as the foundation in promoting successful strategies in implementing sustainable finance in the country.

IN THE GROWING SPACE of financial technology (fintech), the proliferation of the Buy Now Pay Later (BNPL) system made its way in the Philippines. The coronavirus disease 2019 (pandemic) accelerated the process of shifting Filipino consumers to digital payment and resulted to its pervasive adoption, particularly in the e-commerce industry.

FINANCIAL MARKETS could experience another volatility in the near term as major central banks turned hawkish amid inflationary pressures due to the ongoing Russia-Ukraine war, analysts said.

THE LISTED BANKS were more resilient in the first quarter despite rising inflation environment worsened by the ongoing Russia’s invasion of Ukraine.