2023 March

The Bangko Sentral ng Pilipinas (BSP) has confirmed that the Philippine banking sector is well-equipped to tackle possible effects of the US banking crisis. They commented that, compared to US banks, Philippine banks have a more stable asset base and loans that are less sensitive to changes in fair value. Furthermore, PH banks have higher liquidity and deposits, resulting in a lower risk relative to those in the US. SVB’s security holdings in proportion to its capital are larger than that of PH lenders. Lastly, the BSP added that they will continue monitoring developments closely and there is no material exposure outside the country for PH banks.

Data from the PSA showed that the unemployment rate hit 4.8% in January amid the loss of temporary holiday jobs, equivalent to 2.37 mln jobless Filipinos. This was the highest since the 5% seen in September 2022 but lower than 6.4% a year ago. Meanwhile, job quality worsened MoM as underemployment reached 14.1% from 12.6% in December, but improved YoY from 14.9%. January’s labor force shrank to 49.7 mln from 51.2 mln, which lowered the labor force participation rate to 64.5% from 66.4% in December

According to Bank of the Philippines Islands (BPI) CEO Jose Teodoro “TG” K. Limcaoco, BPI’s merger with Robinsons Bank Corp. (RBC) could take effect earlier than expected as both parties expect to get all necessary regulatory approvals within the year.

PLDT’s (TEL) shares dropped by over 7% after the local government of Makati City closed down SMART Communications HQ and branches within the city, for operating without a business permit since 2019 and owing ₱3.2 billion in unpaid franchise tax.