Strategies for Effective Implementation of the CPAR Program - Building Up From the Gains: Lessons From the Improvements for Effective Implementation of the Community-Based Participatory Action Research Program (SEARCA-DA-BAR Policy Brief 2021)
Skills Needs Anticipation (SNA): Workplace Skills and Satisfaction (WSS) Baseline Survey of Select Employers in the Construction Industry
Strengthening Multi-employer Bargaining: Policies and Practices (Phase II)
Non-Hazardous Activities for Children: The Case of Banana and Sugarcane Supply Chains

PIDS WB 2021-0905
7th Mindanao Policy Research Forum
PIDS WB 2021-0905
Annual Public Policy Conference Webinar 4: Robust and Healthy Workforce and Closing Program
PIDS WB 2021-0904
Annual Public Policy Conference Webinar 3: Green And Inclusive Recovery
PIDS WB 2021-0903
Annual Public Policy Conference Webinar 2: Ethical Business
Publication Detail
BSP WPS 2020-03: Impact of Extreme Weather Episodes on the Philippine Banking Sector: Evidence Using Branch-Level Supervisory Data

There is a growing recognition that natural disasters and severe weather-related events pose risks that can potentially and unintentionally affect the stability of the banking system. This study confirms the effects of severe weather conditions on the banking sector performance. The paper first constructs a regional quarterly rainfall damage index (RDI) based on data from weather stations across the country. A regional branch-level database from supervisory reports is then compiled based on 11,000 banking units from the BSP’s Branch Regional Information System (BRIS). Using Dynamic Panel Generalized Method of Moments (GMM), the results show deterioration in branch-level loan growth and loan quality as savings and time deposit liabilities contract and non-performing loans surge following extreme rainfall events from 2014 to 2018. These are particularly evident in regions most vulnerable to extreme rainfall episodes and to branches of universal and commercial banks as well as of rural and cooperative banks. However, the overall negative impact on profitability eventually tapers off. These findings are robust across different specifications and alternative estimation methods such as fixed effects and Panel Vector Autoregression estimations.

Bangko Sentral ng Pilipinas
Authors Keywords
Bayangos,Veronica, B. ; Cachuela, Rafael Augusto, D.; Del Prado, Fatima Lourdes, E.; banking sector, extreme weather episodes, supervisory data;
Download PDF Number of Downloads
Published in 2020 and available for Downloaded 97 times since July 15, 2020
Please let us know your reason for downloading this publication. May we also ask you to provide additional information that will help us serve you better? Rest assured that your answers will not be shared with any outside parties. It will take you only two minutes to complete the survey. Thank you.

To use as reference:
If others, (Please specify):
Name: (optional)
Email: (required, but will not display)
If Prefer to self-describe, please specify:
Level of Education:
If employed either part-time or full-time, name of office:
If others, (Please specify):
Would you like to receive the SERP-P UPDATES e-newsletter? Yes No
Use the space below if you have any comment about this publication or SERP-P knowledge resources in general.