The IMF Country Reports Series covers economic and financial developments and trends in member countries. Each report, prepared by a staff team after discussions with officials of the country, is published at the option of the member.
This paper reviews the Financial System Stability Assessment Update on the Philippines. The assessment reveals that the banking sector has been strengthened considerably since the Asian crisis of the late 1990s and today appears generally resilient to a broad range of macroeconomic risks. The impact of the ongoing global crisis has been milder than originally feared, and the macroeconomic outlook is improving, although risks remain elevated in the near term. Considerable progress has been made toward implementing the recommendations of the initial Financial Sector Assessment Program, particularly in banking supervision.