The Bangko Sentral ng Pilipinas (BSP) welcomed the latest report of the Japan Credit Rating Agency (JCR), which reaffirmed the strength and stability of the Philippine banking system and maintained the country’s investment-grade credit rating of “A-” with a stable outlook.

JCR cited strong loan growth, declining non-performing loan (NPL) ratios, and capital adequacy levels “well above” local and international standards as drivers of resilience. Data showed universal and commercial banks posted a consolidated capital adequacy ratio of 16.5%, while the NPL ratio eased to 3.1% as of end-July 2025, down from 3.6% in 2021.

BSP Governor Eli M. Remolona, Jr. said the central bank will continue to pursue policies that strengthen banks’ capitalization and risk management to sustain confidence in the domestic financial system.

The report also highlighted easing inflation, which averaged 1.7% in the first eight months of 2025, and robust gross international reserves of USD 105.9 billion as of end-August, equivalent to 7.2 months of imports. JCR noted the country’s “solid foreign currency liquidity position” will help it remain “remarkably resilient” to external shocks.

An investment-grade rating signals low credit risk, which lowers borrowing costs and enables the government to allocate more funds for social and development programs.