BSP assures banking system resilient vs bank runs

Bangko Sentral ng Pilipinas (BSP) Governor Eli M. Remolona Jr. assured that, despite a liquidity hit, the Philippine banking system remains resilient against bank runs following the freezing of nearly 730 accounts, with the central bank still in search mode for more suspicious accounts.

- BY DERCO ROSAL

"[Freezing more accounts] does affect liquidity in general, but our banks are very liquid at this point. I think I can say that with confidence: no bank runs," Remolona said in a One News PH TV interview on Friday, Sept. 26, when asked about the impact of the account-freezing orders on banks' liquidity.

Remolona said the BSP is currently investigating questionable, large cash flows throughout the banking system, noting that these financial transactions are mostly carried out through government financial institutions (GFIs).

"We're making a lot of inquiries. We're trying to identify the big flows of cash throughout the financial system-the unusually large flows of cash, but not just cashany financial transactions that look unusual," Remolona said.