PGMA cites opportunities created by US financial crisis to banking sector
Manila (10 October) -- President Gloria Macapagal-Arroyo told agri-business groups to take advantage of the many opportunities offered by "our strong banking sector" to maintain the momentum gained from a robust business atmosphere far removed from the volatility of the global markets.
"This is the time for agribusiness to exploit the financial liquidity of our strong banking sector to expand your role in your respective niche markets," the President said in her speech keynoting Agrilink, Foodlink, Aqualink 2008 held at the World Trade Center in Pasay City.
"We encourage continued activity by the agriculture, food and aquaculture business groups. This also means the government continues to promote privatization including the Food Terminal, Inc. as a counterpoint for our own pump-priming," she added.
The President pointed out that despite the adverse effects of the US financial meltdown on other countries' economies, its impact on the Philippine banking sector is minimal.
"The potential exposure of our banking sector to the asset deflation triggered by the subprime mortgage losses in the U.S. accounts for less than one percent of their total system assets here in the Philippines," the President said.
"This exposure is fully reserved, our banks are well-capitalized, and the innate conservativism of our bankers is matched by the prudence of our regulators," she added. (PIA-MMIO) [top]