But we do recognize that with the unprecedented health crisis, NPLs could build up 1/5  BIS central bankers' speeches  over time. And this is why the BSP is closely monitoring the exposures of banks. The current strength of the banking system is likewise anchored on the presence of sufficient buffers to meet liquidity and capital requirements.
The liquidity of the universal and commercial banks and their subsidiary banks and quasi-banks was more than ample as the high liquidity coverage ratio (LCR) of the industry shows their ability to manage short-term shocks in their liquidity position. Meanwhile, the universal and commercial banks’ net stable funding ratio (NSFR) indicates availability of stable funding to serve customers in the medium term.