Brave capital markets in crisis, banks advised

in World News

THE banks may tap the capital markets during this pandemic to improve their capitalization, the Bankers Association of the Philippines (BAP) said.

Several banks have been braving the debt market recently to raise funds, including Security Bank Corp., Bank of the Philippine Islands and Metropolitan Bank & Trust Co.

“With good credit rating, banks may likewise opt to beef up their capital by raising funds through the capital markets,” BAP told the BusinessMirror in an e-mail.

According to a study by First Metro Investment Corp. and University of Asia and the Pacific, corporate bonds are seen bouncing back in the second half after slowing down in April. The report noted that most of the firms are refinancing existing debts by then since many have held off their expansion plans.

The bankers’ group said that having a strong and resilient banking system was necessary to help the economy recover from this

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