(Adds c.bank comments)
MANILA, March 20 (Reuters) - The Philippine central bank
said on Monday the local banking system remains strong and the
sector is ready to withstand possible shocks posed by the
collapse of some banks in the United States.
The Bangko Sentral ng Pilipinas (BSP) also said it will
continue to closely monitor developments, assess their impact on
the banking system and respond accordingly.
In notes prepared for President Ferdinand Marcos Jr. on the
stability of the banking system following the collapse of
Silicon Valley Bank and Signature Bank (SVB) in the United
States, the BSP said local lenders have an asset base that
significantly differs from that of U.S. banks.
Philippine banks, it also said, "mostly hold loans which
are less susceptible to changes in fair value whereas security
holdings of SVB (were) larger in relation to their capital".
Local banks also have lower market risk exposure
compared to U.S. banks, and have strong risk governance and risk
management systems, according to the BSP notes, which BSP
Governor Felipe Medalla shared with media.
(Reporting by Neil Jerome Morales; Editing by Martin Petty)
