PH banks to remain stable amid rising inflation: Fitch Solutions

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Fitch Solutions finds that the local banking sector’s buffers will keep the industry stable, amid fears of an overheating economy.

By Anna Gabriela A. Mogato

The country’s banking system will keep steady despite concerns over a possibly overheating economy, a new report claimed.

In its Industry Trend Analysis released on Friday, Fitch Solutions Macro Research said it sees “little downside risks to financial stability” in the coming quarters.

This is amid faster inflation rates reported today by the Philippine Statistics Authority, clocking in at 6.7%. This is up from 6.4% in August.

“The capital and liquidity buffers of the banking sector remain adequate and well-above regulatory and industry norms,” Fitch Solutions said.

Likewise, the rising non-performing loans will continue to be manageable due to a supportive operating environment.

Fitch Solutions also noted that it still sees the country’s gross domestic product growth to stay above 6% as credit “continues to be directed towards the productive sectors of the economy.”