“The claims of Philippine banks on the UK and the EU account for only 0.6 per cent of the total assets of the Philippine banking system,” Tetangco told reporters Tuesday.

He also pointed out that these claims were equivalent to just 5.4 per cent of the banking system’s total capitalisation.

In a stress test conducted by the BSP, with a worst-case scenario that all claims would be written off due to Brexit effects, the country’s 14 domestic systemically important banks (D-SIBs) or lenders deemed “too big to fail” would still meet the minimum capital requirements, Tetangco said.

Even in an extreme scenario, the earnings of most D-SIBs would also be sufficient to cover potential losses, the BSP chief added.

Tetangco earlier warned of spillover effects in domestic markets, which were expected to be more volatile in the near term, due to the Brexit. The UK vote is expected to severe not only political but also economic ties with the EU.

The BSP was nonetheless “ready to provide liquidity to our market as needed,” Tetangco said.

In a statement last Monday, the Asian Development Bank (ADB) said “growth in Asia and the Pacific’s developing economies for 2016 and 2017 will remain solid as firm performances from South Asia, East Asia and Southeast Asia help offset softness from the US economy and near-term market shocks from the Brexit vote.”