Philippine banks remain stable and largely immune from shock waves caused by the US credit crisis, economic managers said Thursday.

While the US and European governments moved to bail out troubled financial institutions, the Philippines remained basically unscathed, said central bank deputy governor Nestor Espenilla.

"In the US and Europe they are talking bailout primarily because the issues there have deteriorated into solvency questions," Espenilla told reporters.

"In the Philippines this is not the case because our banks have no solvency issues at this time," he said.

However, a number of Philippine banks do have some exposure to collapsed US investment bank Lehman Brothers.

Espenilla said the central bank remains committed to provide "liquidity loans" to the financial sector if needed.

"These windows are available and continue to be ready for whatever necessity arises for it," he said.

The government's gross financial reserves also remain intact and have not been exposed to any investment banks that have tanked in the United States, he said.

"They are very safe. The (central bank) has followed an extremely conservative policy with respect to the management of the reserves wherein safety of the principal is the overriding concern," he said.

The United States is the Philippines' biggest trading partner, and there have been concerns the financial turmoil could lead to slower growth for Manila's exports.

Socioeconomic Planning Secretary Ralph Recto said the country may experience some slowdown in terms of its exports.

"We are not taking out the possibility that the US will go into recession," Recto said, but stressed macroeconomic fundamentals remained sound.