BAP: PH banks can withstand ABSCBN shutdown
The Philippine banking system can withstand credit losses that may arise from the shutdown of broadcasting giant ABS-CBN Corp., the Bankers Association of the Philippines assured on Tuesday.
From this year to 2027, ABS-CBN has over P21 billion interest-bearing loans that are due for repayment, based on the company’s regulatory filing.
In a statement on Tuesday, the BAP expressed its confidence in the capacity of banks to manage their credit portfolio in relation to the non-renewal of the ABS-CBN broadcast franchise.
“The banking industry remains strongly capitalized and in solid liquidity position to manage credit risks,” the BAP said. “The prudential measures instituted by the Bangko Sentral ng Pilipinas allowed the banking industry to remain strong and healthy through the years that enabled the banks to withstand various crises.”
“In the midst of today’s pandemic and concerns on the non-renewal of the ABS-CBN broadcast franchise, we strongly believe that banks will continue to be steadfast as they are supported by strong financial conditions, robust risk management systems and a good corporate governance,” the association said.
Furthermore, BAP expressed confidence that its member-banks were “prudent” and heeding the welfare of their depositors at paramount importance.
“Your deposits are protected,” the BAP said.