Sign up | Log in



Home  >>  Daily News  >>  Philippines News  >>  Capital Markets  >> Moody’s gives Philippine banks a brighter outlook

27 January 2010

Moody’s gives Philippine banks a brighter outlook

Related Stories

January 25, 2010
Philippine central bank to tighten rules for risky banks

December 22, 2009
Philippines to shed 60% stake in energy firm

December 21, 2009
Philippine central bank defers risk coverage rule to 2011

December 1, 2009
Philippines concerns over Dubai crisis impact on remittances

November 18, 2009
No rate hike as Philippine central bank reviews monetary policy

December 10, 2009
Philippine fast-food giant divests businesses in Taiwan, Shanghai

Moody’s Investors Service has raised its outlook on the banking sectors of the Philippines and 11 other countries from “negative” to “stable,” citing improving domestic economies that could redound to the stability of banks, Philippine Daily Inquirer reported.

In a report released Tuesday, Moody’s said the improved outlook reflected its projection of improving credit conditions that will benefit the banking sectors.

“Outlooks for industries represent our view on the likely future direction of credit conditions in those industries,” Moody’s said in the report entitled “Asian Banking System Industry Outlooks: 12 Systems Move to Stable from Negative.”

The 11 other countries whose banking sectors were given stable outlooks were: Australia, China, Hong Kong, Indonesia, India, Korea, Malaysia, New Zealand, Singapore, Taiwan, and Thailand.

The credit-rating agency cited three main reasons for the upgraded outlook: Improving local economic prospects and stabilizing global conditions, improving access to international debt and money markets, and adequate resiliency of banks to cope with remaining macro-and micro-economic risks, having suffered only limited damage during the past 30 months of the financial crisis.

In the case of the Philippines, Moody’s said the likely increase in domestic consumption, boosted by rising remittances, would benefit the banking sector.

Higher consumption prompts businesses to increase production and invest, an activity that may spur bank lending. Increase in demand for loans may also push interest rates up, boosting the profitability of banks.

Moody’s expects the Philippine economy to grow 3 percent this year, faster than its projected one-percent expansion for 2009. “Some ‘political noise’ could emerge in an election year, but is not expected to cause excessive instability,” Moody’s said.

The credit-rating firm gave a “negative” outlook on the Philippines early last year, citing the likely adverse effects of an economic slowdown on the country’s banking system.


Comment on this Article. Send them to
Letters that do not contain full contact information cannot be published.
Letters become the property of AseanAffairs and may be republished in any format.
They typically run 150 words or less and may be edited
submit your comment in the box below 





1.  Verifier

1. Verifier

For security purposes, we ask that you enter the security code that is shown in the graphic. Please enter the code exactly as it is shown in the graphic.
Your Code
Enter Code

Home | About Us | Contact Us | Special Feature | Features | News | Magazine | Events | TV | Press Release | Advertise With us

| Terms of Use | Site Map | Privacy Policy  | DISCLAIMER |

Version 5.0
Copyright © 2006-2017 TIME INTERNATIONAL MANAGEMENT ENTERPRISES CO., LTD. All rights reserved.
Bangkok, Thailand