The Bangko Sentral ng Pilipinas (BSP) welcomed Japan Credit Rating Agency's (JCR) latest report, which underscores the strength and stability of the Philippine banking system.

JCR cited the country's stable financial system as one of the key factors behind the Philippines' sustained investment-grade credit rating of "A-" with a "stable" outlook. The agency also cited strong loan growth, lower non-performing loans ratio, and capital adequacy ratios that are "well above" both Philippine and international standards.

In line with this, BSP Governor Eli Remolona, Jr. said, “The BSP continues to implement policies that promote robust capitalization and sound risk management among banks. These support financial stability and further build confidence in the domestic financial system.”

Latest data showed that the capital adequacy ratio of universal and commercial banks stood at 16.5 percent on a consolidated basis. The banks also maintained strong asset quality. Non-performing loan ratio declined to 3.1 percent as of end-July 2025 from 3.6 percent in 2021.

JCR's report also noted the country's easing inflation and robust gross international reserves (GIR). Inflation averaged 1.7 percent during the first eight months of the year while GIR reached $105.9 billion in end-August 2025. The GIR is equivalent to 7.2 months' worth of imports and 3.4 times the country's short-term external debt.

JCR also said the country's "solid foreign currency liquidity position" will allow it to stay "remarkably resilient" against external shocks.

An investment-grade rating reflects low credit risk, which helps lower borrowing costs. This, in turn, allows the government to channel more resources toward socially beneficial programs and initiatives. Bangko Sentral ng Pilipinas