The Philippine banking system is secure and stable despite the lending crisis in the U.S. that has raised worries its impact could cross the Pacific, the Bangko Sentral ng Pilipinas reiterated anew on Friday.

BSP Governor Felipe Medalla told the reporters that the Central Bank acknowledged the stakeholders’ efforts to supervise banks in handling the possible spread of risk caused by bank closures.

“Our longstanding efforts in consultation with the industry in setting prudent standards and executing risk practices remain the key pillar in safeguarding the interests of the Filipino people,” Medalla said.

“We reiterate our earlier statement that our banks do not have any material exposure to the failed institutions,” he added.

Earlier this week, Medalla and Finance Secretary Benjamin Diokno underscored that the Philippine economy is spared from the potential impact of the collapse of Silicon Valley Bank in the United States.
Medalla explained that the Philippine banks have “strong balance sheets.”

“(The) Philippine economy [is] unaffected by SVB collapse,” Diokno added in a Viber group message to reporters.

Diokno said that the Philippine banking system is sound and well-capitalized, adding that there is “no reported exposure” of Philippine banks to Silicon Valley Bank.

“Think the Fed and U.S. finance authorities have successfully ring-fenced the banking turmoil,” the Finance chief said.