Understandably, depositors and other creditors are less likely to take an interest in a bank’s financial condition where they know, or have good cause to surmise, that they will be insulated from losses should a bank get into difficulty.
Also serving as pull factors for FDIs are the Philippines’ stable inflation, improved fiscal balance, and resilient external position. From January to March this year, the country attracted $ billion in FDIs. This is lower than the $ billion recorded during the same period in 2018.