“Banks must respond to the needs of their constituents, not the other way around”
Amando M. Tetangco, governor, Bangko Sentral ng Pilipinas, in his keynote speech at Philippine International Banking Convention 2013, feels that the socio-economic impact of developing an inclusive banking system cannot be overemphasised. October 29, 2013 | Amando M. TetangcoIn our view, there are four Rs that define our banking community today: robustness, resilience, responsiveness and responsibility. The three major international credit rating agencies that gave the Philippines investment grade status this year acknowledged our sound and stable banking industry as a contributing factor. They view the Philippine banking system as being well capitalised, profitable, and liquid, with deposit-funded balance sheets and sound loss-absorption capacities. In fact, the Philippines is the only country whose banking sector was assigned a positive outlook by Moody’s; it raised the outlook to positive in December 2012. In January 2013, Moody’s said it sees “positive credit trends in the Philippine banking system, one that has been and will stay relatively immune to global economic shocks, and is benefiting from steady credit growth and growing diversification opportunities.” On the other hand, Standard & Poor is in its February 2013 report said it believes that “the Philippine banking system is reasonably resilient to an external slowdown.” As the regulator of the banking system, we at the Bangko Sentral ng Pilipinas (BSP) value such positive third party assessments which are, of course, corroborated by relevant indicators. But more than being robust and resilient, our banking sector has become more responsive to the varied needs of differentiated stakeholders. Most of all, the responsible behaviour by our banking sector in handling the savings of our people continues to underpin the continued growth of our banks to record levels. A responsive banking industry Indicators clearly show a growing industry. But that cannot be the only measure of success. For BSP, it is the banks that must respond to the needs of their constituents, not the other way around. But let me make one thing clear - this is not meant to be a relaxation of standards; rather, it is a necessary calibra... Please login to read the complete article. If you already have an account, you can login now or subscribe/register.
Categories: Asia Pacific, Basel III, Capital & Strategic Issues, Philippines, Regulation, Risk and Regulationasia pac,basel III,Capital & Strategic Issues,Philippines,riskregulation,Risk and Regulation, Asia Pacific,Basel III,Capital & Strategic Issues,Philippines,Regulation,Risk and Regulation, Keywords:Amando M. Tetangco, BSP, Microfinance, ICAAP, ABIF Amando M. Tetangco, BSP, Microfinance, ICAAP, ABIF
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