The Bangko Sentral ng Pilipinas reported mixed economic signals in the Philippines as remittance growth slowed while the bad loan ratio fell.

According to a report on credit quality by The Inquirer and a separate update on inbound transfers by the same publication, the financial sector remains resilient.

The share of bad debts in the total lending portfolio fell to 3.29% in March, marking a three-month low.

Total bank lending rose 10.7% from a year earlier, which represents the fastest pace of expansion in seven months.

Financial institutions pared their buffers against unpaid debt but maintained a robust coverage ratio of over 91%.

Meanwhile, cash sent home by overseas workers grew by only 2.3% to US$2.87 billion during the same month.

This marks the slowest pace of increase for incoming funds since June 2023 amid rising consumer prices globally.

Analysts noted that higher living costs in host economies constrained the ability of expatriates to send money back home.

Despite the slower monthly growth, the central bank maintained its forecast for a 3%annual expansion in inbound transfers.

Regulators stated that inbound cash will remain a key source of external stability for the national economy.

Global debt watchers warned that a prolonged regional conflict could threaten overseas employment and further dampen household spending.

However, the BSP maintained that domestic banks remain in sound condition to withstand potential economic pressures.

Featured image: Edited by Fintech News Philippines based on an image by jannoon028 via Magnific.