‘Banks’ credit portfolio quality to worsen’

Credit weakness in the Philippine banking system is likely to continue despite the anticipated economic rebound from the coronavirus pandemic and the implementation of Republic Act 11523, or the “Financial Institutions Strategic Transfer Act” (FIST), according to Fitch Ratings.

In a report on Thursday, Fitch Ratings analysts Tamma Febrian and Willie Tanoto said the New York-based credit rating agency “expects the quality of Philippine banks’ credit portfolios to deteriorate further in 2021.”