PH banks are stable for 2017 — Fitch

Fitch Ratings, a credit rating agency, said that the outlook on most Philippine banks for 2017 is stable and will not be upgraded over the next few years since they have already undergone upgrades this year. It is also expected that the banks in the country could be one of the best in the region because of its sound economic fundamentals, healthy system liquid buffers, and strong regulatory framework.

Image grabbed from Deutsche Welle. 

The agency also said that the acceleration in infrastructure spending of the Duterte administration may boost growth in the country. It also predicted that the gross domestic product (GDP) will expand to 6.6% for 2017 – the highest in Asia.

The robust economy will continue to drive brisk loan growth, which we forecast in the mid- to high-teens for 2017. We foresee the bulk of this channelled into infrastructures, real estate, and other business investment activities, while strong consumer demand will continue to spur household borrowing,” it said.

The financial stability of the Philippines improved over the last years, because of the enhancements and refinements to the central bank chapter. Fitch hoped that this particular improvement will continue and develop, also expecting that the Bangko Sentral ng Pilipinas (BSP) will be alert when it comes to potential credit and asset bubbles since credit excess would be at risk.

 

Sources: Manila Times, Philippine Star