Philippines - 2004 Article IV Consultation and Post-Program Monitoring Discussions--Staff Report; Staff Statement; Statement by the Executive Director for the Philippines; And Public Information Notice on the Executive Board Discussion (Electronic book text)

1. The global financial turmoil has impacted most emerging market countries, including the Philippines. Spillovers were particularly prominent for countries with financial systems with high foreign bank participation, large exposures to ailing global financial institutions and structured products, and high external liabilities, including through wholesale funding. Fortunately, none of these characteristics were salient in the case of the Philippines. However, the Philippine financial system is exposed to both external and domestic channels of risk. This chapter tries to identify the main channels of risk and discuss policies to counter any further fallout from the global financial crisis.