CEBU, Philippines - With promising prospects for the country's financial sector, the Bangko Sentral Ng Pilipinas (BSP) is again encouraging banks to serve the countryside market.
"We need to do more because many still do not have access to banking services in the countryside," said BSP acting deputy director of economic research Joselito R. Basilio during the economic briefing held recently in Cebu organized by the Cebu Business Club (CBC).
Basilio said banks have to see the huge opportunity for expansion in the outskirts, as this particular market is not yet served by the formal financial services like banks.
He said banks in the Philippines are well capitalized with buffers to mitigate untoward shocks.
The consistent solid asset growth reported by banks in recent years he explained is a clear reflection of the confidence or continued trust of the public in the soundness of the Philippine banking system.
In Central Visayas, he mentioned that the enormous growth in real estate, businesses across industries and active renting activity continued to put good growth in the region's economy, boosting further the financial sector.
Meanwhile, Basilio warned Cebuano business community that although the path ahead is bending towards optimism, "we have to prepare for external shocks, and other surprise interventions or uncertainties.
The effect of US President Donald Trump and the Brexit phenomenon are two important points that should be well braced for and be worried about.
There are also headwinds that should be seriously considered such as the capital outflow, and credit growth. The US protectionism thrust brings threat to more industries in the Philippines too.
However, given the painful track records and hard battles experienced by Philippines in the past, Basilio said fundamentally, the Philippines is prepared to get away with the bad effects on the economy.
"We believe that we can sustain and accelerate our growth. Our potential is not only something that is only on the books, it is happening," he said. (FREEMAN)