Fitch gives 'stable' outlook for Philippine banks

Fitch Ratings assigned a “stable” outlook for the Philippine banking sector, citing the favorable impact of a growing economy on the industry’s financial performance.

A “stable” outlook indicates security of credit ratings from being downgraded, at least within a year.

Fitch said an improving economy would drive demand for loans and other services provided by banks, in the process boosting their income.

“With a satisfactory economic backdrop, the agency expects banks’ lending and fee-based activities to expand in 2011, although treasury gains may ease amid rising interest rates,” Fitch said in its latest report on the Philippines.

The outlook on the banking sector was anchored on Fitch’s projection that the Philippine economy would grow between 5 and 6 percent this year, consistent with the government’s own forecast.

The credit rating firm also cited the comfortable level of liquidity of the country’s banking sector, and this would help protect it from a crisis similar to that experienced in industrialized countries.

“In Fitch’s view, capital and liquidity buffers are crucial in helping banks preserve their credit profiles in the event of a renewed global downturn, given the fragile economic recovery globally,” Fitch said.

However, Fitch said the country’s banking industry faces risks including the relatively low capital cover for foreclosed properties. It said improving provisioning for these assets is one area Philippine banks must focus on.

Still, Fitch recognized the country’s banking sector for being able to survive the latest global turmoil.

“All the rated Philippine banks have weathered the global economic turmoil in 2008/2009 rather well, with credit costs easily covered by earnings and capital intact,” Fitch said.

The “stable” outlook on the Philippine banking sector came amid continually rising resources of the banking sector and growing bank lending.

Latest documents from the Bangko Sentral ng Pilipinas showed that outstanding loans by commercial banks amounted to P2.4 trillion as of end-April, up 14.2 percent year on year.

Fitch’s issuance of a “stable” outlook on the country’s banking sector came after it decided last month to raise the country’s credit rating on foreign debt from two notches to a notch below investment grade, or from BB to BB+.

The credit rating firm cited the Philippine government’s improving fiscal situation and the growing economy for the improved ratings.

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Filipinos set unprecedented simultaneous global protest vs China - July 8, 2011

NEW YORK - What started as a five-city protest in the United States has become a global event for Filipinos around the world. This Friday, July 8, Filipinos will stage demonstrations in front of China ‘s consular offices across the United States , Canada , Australia and the Philippines .

Filipinos are protesting China ‘s intrusion of Philippine waters at Spratly Islands to extract oil. The Chinese government has scheduled oil rig drilling activities this month.

The protest actions were called by the US Pinoys for Good Governance (USP4GG), a national organization led by Loida Nicolas-Lewis and Rodel Rodis, which includes leading Filipino-American business, political and community leaders focusing on issues impacting the Philippines and the global Filipino community.

“ China is bullying the Philippines , and as global Filipinos, we should do our share and stand up for our motherland,” said Lewis, chair of USP4GG, during a press conference held in New York last Wednesday, July 6.

This is the first global demonstration of Filipinos on an issue they deem so important. This is also the first time that they have found an issue so big they are coming together on a global scale and calling it ePeoplePower, just like their fellow Filipinos in the Philippines did in 1986, when they overthrew a dictator and restored democracy in the country.

“We want to send a message across that Filipinos outside the Philippines do care, even though we are thousands of miles away,” said Rogelio Santos , New York ‘s rally organizer.

The public demonstrations on July 8 seek to expose China ‘s abrogation of its pledge to the Association of South East Asian Nations (ASEAN) to resolve sovereignty disputes peacefully through negotiations. In March 2010, China unilaterally declared the South China Sea a “core national interest” similar to its claims to Tibet and Taiwan and therefore “non-negotiable.”

China appears determined to begin its billion dollar oil rig construction activity this July approximately 125 miles from Palawan and within the Philippines ‘ 200 nautical miles Exclusive Economic Zone.

“ China has no right to do that. That belongs to our motherland, the Philippines !” Lewis said.

Filipino-American communities in New York , Washington , DC, Houston , Chicago , Los Angeles and San Francisco are coming together to join their counterparts in Canada , Australia and the Philippines to participate in this global undertaking.

“When we protect our natural resources, we protect our most precious resources: our people. The livelihood and future of the Filipino people have a great chance of improving if the oil within our territory is not taken from us,” Lewis added.

According to China Daily, the Chinese government has already invested $892 M in super oil rig ready to start drilling this month.

Philippine Foreign Affairs Secretary Albert del Rosario, while visiting Washington DC last week, revealed at least nine Chinese intrusions in Philippine territory in the last few months after a Philippine oceanographic research ship was chased out of Philippine waters by Chinese warships.

“We call on global Filipinos and Philippine organizations throughout the world to stand up to China and protest its impending intrusion of the Philippines by demonstrating in front of the consular offices of China throughout the world,” Lewis added.

(www.asianjournal.com)

(LV July 7-13, 2011 Sec A pg.1)

Filipinos around the globe who wants to lead or participate protest in their respective host countries please email prince@highkot.com

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