BSP welcomes Moody’s favorable assessment of Phl banking system, external sector

The Bangko Sentral ng Pilipinas (BSP) welcomes Moody’s favorable assessment of the country’s banking system and external accounts. 

BSP Governor Eli M. Remolona, Jr. said, “We welcome Moody’s positive assessment. It confirms what we have been seeing: our banks are strong, and our external buffers are solid. At the BSP, we will continue to safeguard financial stability through sound regulations and prudent management of our international reserves.”

In its credit opinion released on 14 April 2026, Moody’s recognized the Philippine banking system as “well capitalized, profitable, and competently managed.” It cited the quality of the BSP’s supervision, noting that its application of international regulatory standards and preemptive measures supports financial stability. 

Moody’s also noted that the Philippines’ gross international reserves (GIR), relative to external debt, is stronger than that of similarly rated economies. It added that the country’s “very robust stock of foreign exchange reserves” exceeds pre-COVID-19 pandemic levels.  

As of end-March 2026, the country’s GIR stood at US$107.5 billion, equivalent to 7.1 months’ worth of imports, well above the three (3)-month international benchmark. The GIR is also 3.9 times the country’s short-term external debt based on residual maturity.[1]

 The BSP also noted Moody’s assessment that the Philippines’ “credible monetary policy framework and flexible exchange rate help buffer external shocks.”

Moody’s credit opinion provides further details on its decision announced on 14 April 2026 to maintain the Philippines’ investment-grade credit rating of “Baa2” with a “stable” outlook, affirmed in August 2024.