Sunday, October 1, 2023
manilastandard.net
ADVERTISEMENT
  • About
  • News
    • Top Stories
    • National
    • World News
    • Pinoy Abroad
    • Features
  • Opinion
    • Editorial
    • Columns
    • Soundbytes
  • LGUs
    • NCR
    • Luzon
    • Visayas
    • Mindanao
  • Business
    • Corporate
    • Economy & Trade
    • Stocks
    • Money
    • Agri & Mining
    • Power & Tech
    • IT & Telecom
  • Sports
    • Basketball
    • Volleyball
    • Fightsports
    • Active
    • Sports Plus
    • One Championship
    • Columns
  • Entertainment
    • TV & Movies
    • Celebrity Profiles
    • Music & Concerts
    • Digital Media
    • Columns
  • Lifestyle
    • Food
    • Culture & Media
    • Fashion
    • Health and Home
    • Leisure
    • Shopping
    • Columns
    • Young Life
  • Special Pages
    • Pets
    • Tech
      • Gadgets
      • Computers
      • Business
      • Tech Plus
    • On the Road
      • Sedan
      • SUV
      • Truck
      • Bike
      • Accessories
      • Motoring Plus
      • Commuter’s Corner
    • Home & Design
      • Residential
      • Commercial
      • Construction
      • Interior
    • Spotlight
    • Cravings
    • Environment & Sustainability
    • Agriculture
    • Pop.Life
      • Newsmakers
      • Hangouts
      • A-Pop
      • Post Its
      • Performances
      • Malls & Bazaars
      • Hobbies & Collections
    • Events
      • Seminars
      • Exhibits
      • Community
    • Biyahero
      • Travel Features
      • Travel Reels
      • Travel Logs
    • Gallery
      • Photos
      • Videos
  • Advertise with Us
No Result
View All Result
  • About
  • News
    • Top Stories
    • National
    • World News
    • Pinoy Abroad
    • Features
  • Opinion
    • Editorial
    • Columns
    • Soundbytes
  • LGUs
    • NCR
    • Luzon
    • Visayas
    • Mindanao
  • Business
    • Corporate
    • Economy & Trade
    • Stocks
    • Money
    • Agri & Mining
    • Power & Tech
    • IT & Telecom
  • Sports
    • Basketball
    • Volleyball
    • Fightsports
    • Active
    • Sports Plus
    • One Championship
    • Columns
  • Entertainment
    • TV & Movies
    • Celebrity Profiles
    • Music & Concerts
    • Digital Media
    • Columns
  • Lifestyle
    • Food
    • Culture & Media
    • Fashion
    • Health and Home
    • Leisure
    • Shopping
    • Columns
    • Young Life
  • Special Pages
    • Pets
    • Tech
      • Gadgets
      • Computers
      • Business
      • Tech Plus
    • On the Road
      • Sedan
      • SUV
      • Truck
      • Bike
      • Accessories
      • Motoring Plus
      • Commuter’s Corner
    • Home & Design
      • Residential
      • Commercial
      • Construction
      • Interior
    • Spotlight
    • Cravings
    • Environment & Sustainability
    • Agriculture
    • Pop.Life
      • Newsmakers
      • Hangouts
      • A-Pop
      • Post Its
      • Performances
      • Malls & Bazaars
      • Hobbies & Collections
    • Events
      • Seminars
      • Exhibits
      • Community
    • Biyahero
      • Travel Features
      • Travel Reels
      • Travel Logs
    • Gallery
      • Photos
      • Videos
  • Advertise with Us
No Result
View All Result
manilastandard.net
No Result
View All Result
Home Business

Diokno assures stability of banking sector

Julito G. RadabyJulito G. Rada
March 15, 2023, 7:25 pm
in Business, Economy & Trade
Reading Time: 4 mins read
A A
Share on FacebookShare on TwitterShare on Email

Finance Secretary Benjamin Diokno, the head of the economic team, on Wednesday assured the public that the economy and the local banking sector remain strong and will not be affected by the financial turmoil in the United States.

Diokno was referring to the collapse of California-based Silicon Valley Bank, the 16th largest bank in the United States catering for the financial needs of technology companies around the world.

SVB’s downfall was linked to the decline “in the value of bonds it acquired during boom times, when it had a lot of customer deposits coming in and needed somewhere to park the cash.”

Diokno said the Philippine banking system is sound and well-capitalized and there is no reported exposure of Philippine banks to SVB. “[I] think the Fed and US finance authorities have successfully ring-fenced the banking turmoil,” he said in a message.

The 44-member strong Bankers Association of the Philippines also assured the public that developments in the US financial system have no substantial or material impact on Philippine banks.

It said local banks have diversified deposit bases that include all sectors of the Philippine economy, allowing them to continuously provide the liquidity needs of their clients.

“Additionally, banks in the Philippines continue to have capital and liquidity ratios that exceed the requirements set by the Bangko Sentral ng Pilipinas,” the BAP said.

“The prudential measures implemented by the BSP [Bangko Sentral ng Pilipinas] provide the necessary support that allows the Philippine banking system to withstand economic shocks,” it said.

The BAP said it continues to work with BSP and other stakeholders to pursue reforms that will lead to an even stronger financial system that sufficiently provides the financial needs of the banking public.

The BAP groups 44 universal and commercial banks in the country, including 20 local lenders and 24 foreign bank branches.

Meanwhile, the head of Silicon Valley Bridge Bank, created by US regulators to succeed SVB after it collapsed, on Tuesday urged fleeing depositors to return with their money, as large banks see an influx of funds.

SVB—a key lender to startups across the United States since the 1980s—collapsed after a sudden run on deposits, prompting regulators to seize control Friday.

“The number one thing you can do to support the future of this institution is to help us rebuild our deposit base,” chief executive Tim Mayopoulos said in a statement, “both by leaving deposits with Silicon Valley Bridge Bank and transferring back deposits that left over the last several days.

He added: “We are doing everything we can to rebuild, win back your confidence, and continue supporting the innovation economy.”

The Federal Deposit Insurance Corporation has said it will cover all SVB depositors, including beyond the usual cap of $250,000 for FDIC protection.

“We are making new loans and fully honoring existing credit facilities,” Mayopoulos said.

SVB’s failure on Friday, the largest US bank failure since 2008, was preceded on Wednesday by the liquidation of Silvergate Bank, a small regional institution favored by the cryptocurrency community.

On Sunday, authorities also forced Signature Bank, the nation’s 21st largest bank, to close.

Larger banks including JPMorgan Chase and Bank of America have since seen an influx of customers, according to two sources close to the industry.

One added that while the larger institutions are not actively pursuing leads from the closed banks, they are accepting their deposits, which is a large sum.

Clients from small and medium-sized banks have also probably transferred all or part of their funds “into major players, that people think there is no way the government will let go down,” said analyst Alexander Yokum, a regional banking specialist at CFRA.

The extent of the transfers will probably only be known when banks publish their quarterly results beginning in April, or if they publish an interim report before then, Yokum said.

In a note, S&P Global Ratings said it has “not seen evidence that the unmanageable deposit outflows experienced at a few banks have widely spread” to others.

In a joint statement on Sunday, the US Federal Reserve, the FDIC and the Treasury Department said SVB depositors would have access to “all of their money” starting Monday.

The Fed also announced it would make extra funding available to banks to help them meet the needs of depositors, which would include withdrawals.

S&P said it believes that the Federal Reserve measures “have equipped banks with additional liquidity sources if needed and probably also lowered the odds that confidence-sensitivity issues become relevant for a large number of banks.” With AFP

Tags: Finance Secretary Benjamin Dioknolocal banking sectorPhilippine economySilicon Valley Bank
ADVERTISEMENT
Julito G. Rada

Julito G. Rada

Related Posts

‘PH to stay fastest growing economy in Asia this year’

byJulito G. Rada
October 1, 2023, 9:35 pm
0
8
New DOT secretary promotes inclusive and sustainable tourism

Finance Secretary Benjamin Diokno said over the weekend the Philippines will remain one of the most resilient economies in the...

Read more

PH1 World eyes P20-b sales from housing projects

byJenniffer B. Austria
October 1, 2023, 9:30 pm
0
8
Megawide clinches P26.3-b contracts

Megawide Construction Corp. is bullish about its newly-formed property business, as it expects to generate at least P20 billion in...

Read more

PLDT unit investing $600m to build 12th data center

byDarwin G. Amojelar
October 1, 2023, 9:25 pm
0
8
PLDT income down 4% to P18.8b in 3 quarters

The information and communications technology subsidiary of PLDT Inc. plans to invest at least $600 million to build its 12th...

Read more

Gov’t expects to raise over $1b from 2nd retail dollar bond sale

byJulito G. Rada
October 1, 2023, 9:20 pm
0
8
Bonoan gets past CA, Tulfo grilled on citizenship

The Philippine government expects to raise more than $1 billion in its second offering of retail onshore dollar bonds (RDBs)...

Read more

Energy experts push nuclear power as game-changing solution in PH

byAlena Mae S. Flores
October 1, 2023, 9:15 pm
0
8
Energy experts push nuclear power as game-changing solution in PH

Energy experts gathered on Saturday to offer nuclear power as a “game-changing solution” to help satisfy the Philippines growing power...

Read more

DOE assures Senate of enough power supply next year

byAlena Mae S. Flores
October 1, 2023, 9:10 pm
0
8
DOE releases terms on second round of GEAP

The Department of Energy (DOE) expressed optimism there would be no power supply shortage in the dry months next year...

Read more

Print Edition

View More

Recent Posts

  • VACC honors partners on 25th anniversary
  • Rising sea levels imperil small islands, ‘world’s breadbaskets’
  • South Korea hosting world environment day next year
  • FAO calls for sustainable, inclusive mechanization
  • Creativity convention
  • DMCI’s awards
  • Bolstering Nigeria’s booming catfish sector to help feed Africa’s most populous country
  • Cityland at Xavierville

Advertisement

Latest News

DMCI’s awards

byManila Standard
October 1, 2023, 9:43 pm
0
8
Cityland at Xavierville

Conglomerate DMCI Holdings and integrated energy subsidiary Semirara Mining and Power Corp. are recognized the top-performing Philippine listed companies by...

Read more

Bolstering Nigeria’s booming catfish sector to help feed Africa’s most populous country

byManila Standard
October 1, 2023, 9:40 pm
0
8
Bolstering Nigeria’s booming catfish sector to help feed Africa’s most populous country

“Fish farming is my mother’s business,” says Nurudeen Quadri, a 38-year-old fish farmer from Ijebu-Ode in southwest Nigeria as he...

Read more

Cityland at Xavierville

byManila Standard
October 1, 2023, 9:38 pm
0
8
Cityland at Xavierville

Cityland Development Corp. announces the turn-over of its latest condominium project—101 Xavierville along Xavierville Ave. in Loyola Heights, Quezon City....

Read more

‘PH to stay fastest growing economy in Asia this year’

byJulito G. Rada
October 1, 2023, 9:35 pm
0
8
New DOT secretary promotes inclusive and sustainable tourism

Finance Secretary Benjamin Diokno said over the weekend the Philippines will remain one of the most resilient economies in the...

Read more

PH1 World eyes P20-b sales from housing projects

byJenniffer B. Austria
October 1, 2023, 9:30 pm
0
8
Megawide clinches P26.3-b contracts

Megawide Construction Corp. is bullish about its newly-formed property business, as it expects to generate at least P20 billion in...

Read more

Advertisement

ADVERTISEMENT
Facebook Twitter Instagram Youtube

ABOUT US

Manila Standard

Manila Standard website (manilastandard.net), launched in August 2002, extends the newspaper’s reach beyond its traditional readers and makes its brand of Philippine news and opinion available to a much wider and geographically diverse readership here and overseas.

Digital Edition

In tone and content, the online edition mirrors the editorial thrust of the newspaper. While hewing to the traditional precepts of fairness and objectivity, MS believes the news of the day need not be staid, overly long or dry. Stories are succinct, readable and written in a lively style that has become a hallmark of the newspaper.

Download – Today’s Paper

Search

No Result
View All Result

6th Floor Universal Re Bldg., 106 Paseo De Roxas cor. Perea Street, Legaspi Village, 1226 Makati City Philippines

Trunklines: 832-5554, 832-5556, 832-5558

© 2021 Manila Standard - Designed and Developed by Neitiviti Studios.

No Result
View All Result
  • About
  • News
    • Top Stories
    • National
    • World News
    • Pinoy Abroad
    • Features
  • Opinion
    • Editorial
    • Columns
    • Soundbytes
  • LGUs
    • NCR
    • Luzon
    • Visayas
    • Mindanao
  • Business
    • Corporate
    • Economy & Trade
    • Stocks
    • Money
    • Agri & Mining
    • Power & Tech
    • IT & Telecom
  • Sports
    • Basketball
    • Volleyball
    • Fightsports
    • Active
    • Sports Plus
    • One Championship
    • Columns
  • Entertainment
    • TV & Movies
    • Celebrity Profiles
    • Music & Concerts
    • Digital Media
    • Columns
  • Lifestyle
    • Food
    • Culture & Media
    • Fashion
    • Health and Home
    • Leisure
    • Shopping
    • Columns
    • Young Life
  • Pets
  • Tech
    • Gadgets
    • Computers
    • Business
    • Tech Plus
  • ON THE ROAD
    • Sedan
    • SUV
    • Truck
    • Bike
    • Accessories
    • Motoring Plus
    • Commuter’s Corner
  • Home & Design
    • Residential
    • Commercial
    • Construction
    • Interior
  • Spotlight
  • Cravings
  • Environment & Sustainability
  • Agriculture
  • Pop.Life
    • Newsmakers
    • Hangouts
    • A-Pop
    • Post Its
    • Performances
    • Malls & Bazaars
    • Hobbies & Collections
  • Events
    • Seminars
    • Exhibits
    • Community
  • Biyahero
    • Travel Features
    • Travel Reels
    • Travel Logs
  • Gallery
    • Photos
    • Videos
  • Advertise with Us

© 2021 Manila Standard - Designed and Developed by Neitiviti Studios.

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In

Install Manila Standard Web App

Install App