It first raises a question of whether such operations would have to be coordinated with the Treasury, given that both the Treasury and the Federal Reserve are authorized to intervene in foreign exchange markets and routinely coordinate their interventions.
The quality of the banking sector loan portfolio remained manageable and within BSP’s expectations with total non-performing loans at 4.3 percent as of end-November 2021. During the same period, NPL coverage ratio remains high at 87.1 percent. The banking system posted an annualized net profit growth of 8.5 percent year-on-year or P199.8 billion as of end-September 2021. Banks maintained sufficient capital and liquidity buffers.