A low domestic saving rate is a basic constraint to achieving higher levels of investment needed to support a faster pace of economic growth. To promote savings, the Philippine financial market needs to offer a broader array of financial instruments beyond bank deposits and equity. We are particularly keen on seeing the faster development of the domestic debt market.
As of 2003, total outstanding domestic bonds accounted for just around 40 percent of GDP, compared with 85 percent for bank assets and 69 percent for equity. Most of these bonds are in the form of government securities.