Capital adequacy ratio, recorded at 16.0 percent on consolidated basis, is well above the BSP and international minimum. The risk of economic overheating has been raised by some analysts. We do not believe we are there yet and we remain very vigilant to avoid it. The current pace of credit growth is manageable .
Our credit-to-GDP ratio of 63.6 percent as of Q2 2017 is still one of the lowest by far in Asia, indicating relatively low overall leverage. Bank loans are diversified across economic sectors and are backed by durable economic activity with 89 percent going into production sectors. Moreover, BSP monetary operations indicate just sufficient domestic liquidity to support expansion.