Published May 24, 2021, 4:51 PM
Banks’ non-performing loan (NPL) ratio will breach six percent by the end of 2021, according to Bangko Sentral ng Pilipinas (BSP) Governor Benjamin E. Diokno.
NPL ratio which is currently at 4.21 percent end-March, while still considered manageable, is expected to “settle at slightly above six percent by end-December 2021,” said Diokno. He said this estimate is consistent with its most recent survey of banks’ outlook for the year which remains to be stable.
BSP Governor Benjamin E. Diokno (Credit: BSP photo)
“As considerable economic uncertainty remains, the BSP continues to monitor relevant risks and vulnerabilities arising from banks’ activities through enhanced surveillance mechanism,” Diokno told bankers attending the recent virtual convention of the Bankers Institute of the Philippines.