Phl banks remain on stable footing

Moody’s Investors Service has maintained a stable outlook for Philippine banks as interest rate cuts from the Bangko Sentral ng Pilipinas BSP) this year are seen to support economic recovery.

- KEISHA TA-ASAN

In a report on the Philippine banking system, the debt watcher said the outlook remains stable as banks' operating environment would likely improve amid hopes of stronger economic growth for this year.

"We forecast that the Philippines' GDP will expand by 5.9 percent in 2024 and six percent in 2025. Despite battling high inflation, the Philippines remains one of the fastest growing economies in Asia," Moody's said.

Despite the aggressive rate hikes to tame inflation, the Philippines booked a gross domestic product growth of 5.6 percent in 2023. Still, expansion was below the government target of six to seven percent.

"Strong domestic consumption underpins growth and this insulates against the impact of subdued growth of large global economies," Moody's said.