Conglomerate ties a double-edged sword for Phl banks, says Moody's

The close links between Philippine banks and large domestic conglomerates have long supported credit growth, but these relationships also pose growing risks, debt watcher Moody's Ratings said in a report.

- By KEISHA TA-ASAN

"Philippine banks' close ownership links with large domestic conglomerates have supported their credit profiles over the years, but also pose concentration and contagion risks," Moody's said in its latest sector-in-depth analysis.

The report noted that powerful business groups own most major banks, creating opportunities to grow their loan books and strengthen capital buffers.