These ratios are at least twice the international benchmark levels of 3 months of imports and 1 time the debt ratio. The banking system remains sound.
The series of banking reforms put in place over the last five years, and among others, the inherent conservatism and the domestic orientation of banks, as well as the BSP’s phased-in approach to embracing financial innovation, have resulted in minimal exposure of the banking system to the troubled international financial institutions.