The growth in the banking system’s assets was supported by the 6.3 percent growth in deposits amounting to P12.6 trillion as of end-February 2019. The deposits are mostly peso-denominated and in the form of savings account which are considered as stable funding source. Albeit slower compared to the previous year, the decline in deposit growth rate is matched by the increase in bond issuances.
As a result, the U/KB-issued bonds payable jumped by 163.1 percent to P316.7 billion as of end-February 2019 from P120.4 billion as of end-February 2018. The banking system’s risk management system remains strong that is backed by capital.