The Bangko Sentral ng Pilipinas (BSP) on Friday reiterated that Philippine banks do not have any material exposure to the collapsed Silicon Valley Bank (SVB) and Signature Bank in the US.
BSP Governor Felipe Medalla said in a statement that the Philippine banking system remains safe and sound.
“We have shown our resilience through the pandemic, and we continue to be strong in the face of the ongoing turbulence in the global markets,” Medalla said.
The BSP chief said that the central bank recognizes the actions taken by banking supervisory authorities to address the potential contagion risk from the closure of banks.
“Nonetheless, we will respond accordingly as market conditions evolve,” Medalla added.
According to Medalla, the BSP’s longstanding efforts in consultation with the industry in setting prudent standards and executing risk practices remain the key pillar in safeguarding the interests of the Filipino people.
US banks sought record amounts of emergency liquidity from the US Federal Reserves in the wake of the failure of SVB and Signature Bank.
The financial institutions in the US took an all-time high $152.9 billion from the US Fed’s traditional lender-of-last resort facility and another $11.9 billion in loans from the newly created Bank Term Lending Program.
In all, the US Fed shelled out roughly $300 billion including more than $140 billion in other funding provided to the new bridge banks established by the Federal Deposit Insurance Corp.
