The Philippines’ Financial Stability Coordination Council published its 2025 Financial Stability Report, finding that the financial system remained stable, with banks well positioned to lend and holding sufficient capital to absorb unexpected losses. It also identified vulnerabilities requiring closer monitoring, including rising leverage across sectors, elevated property prices, increased lending to conglomerates and other selected sectors, and growth in unsecured consumer lending, largely credit card debt. The council also highlighted cyber threats and geopolitical tensions. Planned safeguards include activating a tool that requires banks to build additional capital in favorable conditions, strengthening oversight of nonfinancial corporations, particularly complex conglomerates, expanding data coverage for nonbank financial institutions and operationalizing a systemic crisis management playbook.
2026-06-08Philippines Insurance Commission
Philippines’ Financial Stability Coordination Council finds financial system stable, outlines safeguards for emerging risks
The Philippines’ Financial Stability Coordination Council found that the financial system remained stable in 2025 but identified risks from rising leverage, elevated property prices, concentrated lending, unsecured consumer credit, cyber threats and geopolitical tensions. It outlined stronger capital, oversight, data and crisis-management safeguards to address emerging vulnerabilities.