IMF flags PH bank risks from global trade

The Washington-based multilateral lender International Monetary Fund (IMF) said sluggish profits in the Philippine manufacturing sector, which accounts for nearly one-fifth of domestic loans, could make banks more vulnerable if global trade conditions sour.

- By DERCO ROSAL

In its latest staff report for the Philippines, dated Dec. 14, the IMF noted that the manufacturing sector has been posting low earnings.

“The soundness of manufacturing and wholesale and retail loans—accounting for about 19 percent of domestic loans at end-August 2025—could be affected by adverse global trade developments,” the IMF said.

Among the major global trade policies that left markets grappling to maintain stability were the sweeping tariff hikes announced by United States (US) President Donald Trump during Liberation Day last April, which were imposed in August.