Philippine banks remain stable and largely immune from shock waves caused by the US credit crisis, economic managers said Thursday.
While the US and European governments moved to bail out troubled financial institutions, the Philippines remained basically unscathed, said central bank deputy governor Nestor Espenilla.
"In the US and Europe they are talking bailout primarily because the issues there have deteriorated into solvency questions," Espenilla told reporters.
"In the Philippines this is not the case because our banks have no solvency issues at this time," he said.
However, a number of Philippine banks do have some exposure to collapsed US investment bank Lehman Brothers.
Espenilla said the central bank remains committed to provide "liquidity loans" to the financial sector if needed.
