BAP: Philippines’ banking system not exposed to US contagion

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MANILA — The Bankers Association of the Philippines assured on Tuesday, March 14 that the country’s banking system is not exposed to the contagion from the collapse of U.S.-based banks.

In a statement, the BAP explained the fallout from the closures of Silicon Valley Bank (SVB) and Signature Bank will not have any “material impact” on Philippine banks.

“Banks have diversified deposit bases that include all sectors of the Philippine economy, allowing them to continuously provide the liquidity needs of their clients,” the statement read.

SVB’s collapse last Friday, March 10 was precipitated by a bank run, essentially the bank did not have any cash to pay back its depositors. The bank was considered one of the largest lenders to the tech sector.

Two days later, the ensuing panic forced regulators to shut down Signature Bank to soothe equity markets and investors.

Experts reckoned that SVB was the largest bank to fail ever since the 2008 Global Financial Crisis. The failure of the two banks sent investors everywhere on edge as the collapse dominated headlines over the weekend.

“Additionally, banks in the Philippines continue to have capital and liquidity ratios that exceed the requirements set by the Bangko Sentral ng Pilipinas,” the BAP added.

Philippines equities reacted to the news glumly. Local shares trended downward at the start of the week.

Much like the BAP, Bangko Sentral ng Pilipinas Governor Felipe Medalla assured the public that Philippine banks are not exposed to the fallout. “The prudential measures implemented by the BSP provide the necessary support that allows the Philippine banking system to withstand economic shocks,” BAP said. n

HIV among teens

IN their teens, there are Filipinos who are getting infected with the human immunodeficiency virus, the Department of Health has reported. In its latest HIV/ AIDS registry, the DOH reported this week that 79 Filipinos aged 10 to 19 years and seven children below age 10 were diagnosed with HIV in January alone.

Of the 86 cases, 78 got HIV through sexual contact, according to the DOH. The department reported that 65 of the infections acquired HIV through male-to-male sex, eight through sex with both male and female, and five through heterosexual contact, with most of the sexual contact unprotected or unsafe. Of the cases, 18 were 18 to 19 years old, 20 were aged 15 to 17 while two were between ages 10 and 14.

The problem raises the need to heighten awareness of safe sex and reproductive health among adolescents. Some sectors have expressed concern that sex education can encourage sexual promiscuity among the youth. Proponents of sex education, on the other hand, argue that adolescents will explore their sexuality anyway, so it is better to provide them with proper information on safe sex, reproductive health and the risks of HIV infection and teenage pregnancy.

Before the COVID pandemic, the Joint United Nations Program on HIV/AIDS had reported that the number of new HIV infections in the Philippines had more than doubled between 2010

From My Point of View

SINCE taxation is part and parcel of our existence, let’s continue to dwell on this subject matter. We are in the tax season mode, so we’ll provide some insights to navigate this important aspect of our lives whether we like or not.

Child and dependent care credit

For instance, Child and Dependent Care Credit is again a deductible tax credit. I have a client from Fresno, California who was given a $2,000 credit for his two-year-old baby and then some. Because the breadwinner of the house, a nurse, received a refund of more than $10,000. He got excited that at last he can now have some cash to pay for his down payment for his first house. If you have for more than one and 2016, from 4,300 infections to approximately 10,500. The country has recorded the fastest growth rate in HIV infection in Asia and the Pacific, becoming one of eight countries that account for over 85 percent of new infections in the region, according to UNAIDS.

Last year, the DOH recorded a 21 percent increase in new HIV infections compared to 2021. In January this year, 1,454 new cases were recorded nationwide, or a daily average of 46 new infections. HIV cases in the country have shifted from female sex workers to men having sex with men.

A growing concern for health experts is the increase in HIV infections among teenagers. While new generation treatments have become available for HIV, the infection is still debilitating and can lead to death if it progresses to fullblown AIDS. Health experts are calling for a multisectoral response to the problem, from the home to schools, communities, civil society and concerned government agencies, all moving to save youths from infection. (Philstar.com)