MANILA – The Bangko Sentral ng Pilipinas (BSP) said the country’s banking sector remains resilient despite concerns raised by Fitch Ratings over the potential impact of economic challenges on banks’ financial performance.

The BSP issued the statement after Fitch Ratings warned that prevailing economic conditions in the Philippines could lead to higher credit impairments and weaker profitability among banks this year.

“The BSP notes Fitch’s assessment and continues to closely monitor risks to credit quality, profitability, liquidity, and capital adequacy,” the BSP said.

“Philippine banks remain well positioned to withstand potential shocks, supported by ample liquidity, adequate capital buffers and manageable asset quality,” it added.

According to the central bank, while certain borrower segments may experience some pressure, there are no signs of widespread deterioration in the banking system.

“The BSP expects banks to maintain prudent credit standards, adequate provisioning, strong governance, and sufficient capital and liquidity buffers,” the central bank said.

The BSP also said it stands ready to implement appropriate supervisory measures when necessary to safeguard financial stability and protect the public.