The sound and stable condition of Philippine banks has also been one of the anchors of sustained performance of the domestic economy. Over the medium-term, we expect the country’s banking system to continue its robust performance based on sound fundamentals.
But this shock was only the latest in a series of extraordinary events that have put Europe's economy and banking sector to the test – the pandemic, Russia's war against Ukraine, and the subsequent energy crisis. It is against this background that I would like to review the last couple of months from the perspective of euro area banks.