The Central Bank of the Philippines (Bangko Sentral ng Pilipinas) published a statement welcoming Japan Credit Rating Agency’s latest report, which links the Philippines’ sustained investment-grade credit rating of A- with a stable outlook to a stable financial system and a strong banking sector. The central bank reiterated that its policy and supervisory approach continues to focus on robust capitalization and sound risk management among banks. JCR cited strong loan growth, a lower non-performing loan ratio, and capital adequacy ratios that are “well above” Philippine and international standards. Supervisory data showed the consolidated capital adequacy ratio of universal and commercial banks at 16.5% (end-March 2025) and a non-performing loan ratio of 3.1% as of end-July 2025, down from 3.6% in 2021. The report also referenced easing inflation and sizeable buffers, with inflation averaging 1.7% in the first eight months of 2025 and gross international reserves at USD 105.9 billion at end-August 2025, equivalent to 7.2 months of imports and 3.4 times short-term external debt.
Central Bank of the Philippines 2025-09-18
Central Bank of the Philippines welcomes JCR report reaffirming the Philippines A- rating and highlighting strong bank capital and asset quality
The Central Bank of the Philippines welcomed Japan Credit Rating Agency's report affirming the Philippines' A- credit rating with a stable outlook, citing a strong banking sector and stable financial system. The report highlighted robust loan growth, a lower non-performing loan ratio of 3.1%, and a capital adequacy ratio of 16.5% for universal and commercial banks. Inflation averaged 1.7% in early 2025, with gross international reserves at USD 105.9 billion.