Philippine central bank report: Iran war poses controllable risks to financial stability, mainly through indirect transmission factors

(1) The Central Bank of the Philippines and other interdepartmental committees released a report stating that the Iran war poses substantial risks to the financial stability of the Philippines, but these risks are within a controllable range. (2) The report indicates that with rising yields and capital outflows, a risk-averse sentiment has already emerged in the Philippine government bond market. (3) The Philippine banking sector has minimal direct financial exposure to the Middle East, Iran, and Israel, and spillover effects are more likely to arise from indirect channels—including rising oil prices, tightened external financing, and an economic growth slowdown.