First, let me thank the Economic Journalists’ Association of the Philippines for inviting me to share the Bangko Sentral ng Pilipinas’ view on the current and future state of the Philippine economy. As we are all aware, the specter of slowing global economic growth looms larger than ever on the horizon as protectionist policies and geopolitical tensions continue to dominate the global growth narrative.
The Financial Stability Committee has calculated that the so-called narrow measure of shadow banking assets have grown from to 36 trillion US dollars in 2014 with the growth having averaged over 6 percent across jurisdictions between 2011 and 2014. At least three drivers can be behind this development.