The Philippine banking system is ready to address any possible shocks brought about by the fallout of American lenders, the Bangko Sentral ng Pilipinas (BSP) said Monday.
In its notes for President Ferdinand “Bongbong” Marcos Jr., the central bank said local lenders have a significantly different asset base and have a lower market risk exposure than US banks.
Assets of the bank were seized after it took a $1.8-billion loss in the sale of $21-billion worth of securities, with theUBS Group AG has agreed to buy its rival “This means CSG is too big to fail. It does not look like that other Globally Systemically Important Banks have the same problem, in which case the impact on the global economy will not be significant,” BSP Governor Felipe Medalla said in a separate mobile message to reporters.
“Losses of Philippine banks, including estimated net unrealized losses on security holdings due to the rising interest rate environment, are expected to be small relative to their US counterparts,” it said.
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