Southeast Asian banks, including those in the Philippines, face asset quality risks due to increasing household debt and elevated interest rates, Moody's Ratings said in a recent report. The credit profiles of several ASEAN banking systems have weakened as household debt has grown faster than economic output over the past decade, spurred by strong consumption and improved financial inclusion. Moody's assessed six ASEAN economies, noting that the Philippines, Malaysia, and Indonesia face moderate risk, while Thailand and Vietnam face high risk, and Singapore has low risk. Non-performing loans have risen in the retail segment, particularly in Vietnam and the Philippines, potentially straining banks' asset quality.