The rule of thumb is that a sufficient GIR level can cover three (3) months’ worth of imports of goods and payments. My fourth and last point – a strong and stable banking system – also offers a sound basis for optimism. Our financial system remains sound and continues to effectively intermediate funds to productive sectors, thus promoting economic growth.
The continued strong credit activities demonstrate the effectiveness of Philippine banks in their role as intermediator of funds in the economy. Banks remain sufficiently capitalized and past due ratios have also consistently declined over the years, giving banks greater ability to intermediate funds, manage risk, and maintain profitability.