Bangko Sentral ng Pilipinas (BSP) Governor Eli M. Remolona Jr. is once again calling on all Philippine banks to get the message across that the banking system is reliable and there is financial stability.
Promoting the banking sector and nurturing the public’s trust and confidence in the BSP and the financial system encourages the growth of deposits, which will boost bank lending and improve the operation of other banking services.
Remolona communicated this to banks in a circular letter (BSP Circular Letter No. CL-2023-067) he signed last Dec. 16.
It was announced together with the call for banks to promote the National Banking Week on Jan. 1 to 7, 2024.
As always, the BSP is actively encouraging all banks to promote and communicate National Banking Week especially its message of financial stability. Last year, the message was to ensure the public that banks have stronger cybersecurity.
Remolona “enjoins all banks to promote the National Banking Week 2024 pursuant to Presidential Proclamation No. 2250 series of 1982”.
He said the upcoming National Banking Week will focus on the theme "Financial Stability: Foundation for Prosperity”.
The Filipino version is “Katatagang Pinansyal: Saligan ng Kasaganaan”.
The BSP through the circular letter, is instructing all banks to publish communication materials through their websites, social media pages, automated teller machine screen displays, and other channels, the weeklong event. It will have the hashtags #NBWeek2O24 #FinancialStability #BSP.
The banking sector is the core of the financial system and it continues to be resilient and stable with a strong balance sheet, profitable operations, sufficient capital and liquidity buffers, and ample provision for probable losses, said the BSP in a report.
For financial stability, for the first six months of 2023, banks have invested a total P6.6 trillion of its funds, up 9.2 percent year-on-year. This is to fuel the growth of the financial system which has remained stable and profitable with sufficient capital and liquidity.
Besides strong growth in investments, the banking sector also showed growth in lending and deposits in the first half of the year.
Bank deposits funded the key activities of banks such as lending and investing. As of end-June, the total deposits increased 8.1 percent year-on-year to P17.8 trillion.
Meanwhile, as of end-October this year, the central bank reported total financial system resources of P29.986 trillion, up by 8.32 percent from P27.683 trillion in 2022.
Last year, the financial system’s total resources amounted to P28.806 trillion, up by 9.3 percent from 2021’s P26.357 trillion.
The BSP said the Philippine financial system remained resilient and supportive of the country’s financing needs despite high inflation and tightened monetary policy.