The Bangko Sentral ng Pilipinas notes Fitch’s assessment and continues to closely monitor risks to credit quality, profitability, liquidity, and capital adequacy.

''Philippine banks remain well positioned to withstand potential shocks, supported by ample liquidity, adequate capital buffers, and manageable asset quality,'' the BSP said in a statement on Friday.

''While some pressure may emerge in specific borrower segments, risks remain contained, with no evidence of broad-based deterioration.,'' it added.

On Thursday, Fitch Ratings downgraded its outlook for Philippine banks to ''deteriorating'' from neutral but ''banks ' financial performance should recover gradually in 2027 as the country's medium-term economic prospects remain intact.''

A statement from Fitch Ratings website said ''this takes into consideration our projections of higher credit impairments associated with a significant slowdown in economic growth, as well as the impact of higher inflation on household finances and debt-servicing capacity.''

Fitch Ratings added that ''banks' rapid expansion in unsecured credit card receivables is a vulnerability due to the higher intricacies of the product, which has risen to eight percent of total lending in the system.''

''The BSP expects banks to maintain prudent credit standards, adequate provisioning, strong governance, and sufficient capital and liquidity buffers. The BSP stands ready to take appropriate supervisory action, as needed, to preserve financial stability and protect the public,'' the central bank said. PHS