The Philippines' financial system is under growing pressure from rising corporate and household debt, as well as ongoing instability in the Middle East, BusinessWorld reported Monday, citing the Financial Stability Coordination Council (FSCC).
Financial Stability Coordination Council said geopolitical tensions could lift oil prices, weaken markets, and tighten financial conditions, slowing economic growth if the conflict continues. The banking sector still has strong buffers but is facing rising risks, the report said.
The council warned that companies in energy- and interest-sensitive sectors could struggle with higher debt costs and thinner profits, which may affect bank asset quality. It also flagged possible losses from higher bond yields, though it said the system remains stable overall, the news outlet said.
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