DOF: ‘US banks’ failure won’t hurt local economy’ B J E Y. A @jearcalas
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INANCE Secretary Benjamin E. Diokno assured the public on Wednesday that the concerns and challenges faced by the US banking system following the collapse of the Silicon Valley Bank (SVB) would not harm the Philippine economy. In a message to reporters, Diokno said the Philippine banking system remains “sound” and “well capitalized.” “There is no reported exposure of Philippine banks to Silicon Valley Bank,” he said. “Think the Fed and US finance authorities have successfully ring
fenced the banking turmoil,” he added. Earlier this week, the Bankers Association of the Philippines (BAP) assured the public that the fallout from failed US banks will not have a “substantial” or “material” impact on the country’s banking system. “The Bankers Association of the Philippines assures the Filipino public that recent developments in the US financial system have no substantial or material impact on Philippine banks,” the group said in a statement on Tuesday. The BAP issued the statement after concerns were raised regarding the strength of the US banking system following the
collapse of SVB and Signature Bank of New York. International news outfits have reported that the closure of the two lenders have been attributed to ill-timed decisions of their bankers. Reports have also indicated that the sudden demise of the two US banks exposed the weaknesses in the US banking system, particularly in terms of regulation. (Related story: https:// businessmirror.com.ph/2023/03/13/ us-govt-moves-to-stop-potentialbanking-crisis-after-historic-svbfailure/)
“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,” the BAP said. The BAP explained that 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.” The group added that Philippine banks’ current capital and liquidity ratios continue to “exceed” the requirements set by the BSP. “The BAP 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,” it said.
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Thursday, March 16, 2023 Vol. 18 No. 152
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OFW REMITTANCES SEEN TO BUCK RECESSION RISK F ■
B C U. O @caiordinario
ILIPINOS working abroad are still expected to continue increasing their remittances this year despite the threat of recession in advanced countries like the United States.
On Wednesday, the Bangko Sentral ng Pilipinas (BSP) disclosed that cash remittances from Filipinos overseas grew 3.5 percent to $2.76 billion in January 2023. Ateneo de Manila University Department of Economics Chairperson Alvin P. Ang told BM that remittances sent by Filipinos to their families back home are expected to increase 3 to 5 percent this year. “Remittances may be invisible because even the pandemic did not cause it to post a negative growth,” Ang told this newspaper on Wednesday. “I expect remittances to post a growth of around 3 to 5 C A
PROMISE OF EASTER Children walk past sculptures of Jesus Christ and His 12 Apostles displayed outside the Diocesan Shrine and Parish of St. Therese of the Child Jesus in Antipolo City in this photo taken on March 15, 2023. The images will remain uncovered for churchgoers during the Visita Iglesia for Lenten season. Many Catholics believe that the tradition of covering crucifixes and other sacred images from two Sundays before Easter until Holy Saturday keeps people’s minds on the promises of Easter. NONOY LACZA
vows ease of doing biz MILLENNIALS DRIVING DTI TOURISM REBOUND for logistics sector in PHL T M B M. S F. A
@akosistellaBM Special to the BM
ILLENNIALS are having the time of their lives, post-pandemic, thinking of traveling, and booking their vacations online. In a news briefing on Tuesday, Michelle Ho, general manager for Klook Philippines and Thailand, said Filipinos have been booking vacations to Singapore, Japan, and Hong Kong, as well as domestic destinations like Boracay, Manila, Tagaytay, Cebu, Clark, and Subic. As per the Klook Travel Pulse, bookings to these domestic
destinations grew by 87 percent last year versus prepandemic 2019. For Hong Kong alone, bookings by Filipinos jumped by 230 percent month-on-month to January 2023 from December 2022. Ho said the bookings for Hong Kong continue to increase by “double digits” for February and March. She attributed this growth to increasing digitalization in the tourism industry: “Travel has become even more accessible to consumers that more people are becoming digital-savvy, and we S “M,” A
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HE Department of Trade and Industry (DTI) vowed to make it easier for the Philippine logistics sector to do business in the Philippines. Among the initiatives of the Trade department is to streamline the accreditation process for the logistics sector. At the Supply Chain Trilogy 2023 Forum, DTI Assistant Secretary Mary Jean T. Pacheco said a streamlining initiative of DTI has been endorsed to the Anti-Red Tape Authority (ARTA) for Phase 2. In a presentation at the forum, Pacheco said the Trade department has so far accomplished Phase 1 on cold storage, customs broker-
age, domestic shipping, freight forwarding, trucking and warehousing sectors. In addition, the DTI inked a memorandum of agreement (MOA) with the Civil Aeronautics Board (CAB) of the Department of Transportation (DOTr). In December 2022, the DTI reported that “In 2021, the Logistics Services Philippines [LSPH] Project Streamlining was carried out by DTI to identify regulatory constraints in the freight forwarding sector.” Among the key findings, the DTI noted, are the “separate and redundant” accreditation requirements and processes for sea and S “DTI,” A
PESO EXCHANGE RATES US 55.0250 ■ JAPAN 0.4099 ■ UK 66.8939 ■ HK 7.0112 ■ SINGAPORE 40.9138 ■ AUSTRALIA 36.7567 ■ SAUDI ARABIA 14.6550 ■ EU 59.0638 ■ KOREA 0.0422 ■ CHINA 7.9984 Source: BSP (March 15, 2023)