The narrow monetary aggregate M1 has remained the main contributor to broad money growth, consistent with a still heightened preference for liquidity in the money-holding sector and a low opportunity cost of holding the most liquid forms of money. Developments in loans to the private sector were characterised by somewhat weaker lending to non-financial corporations and resilient lending to households.
Under the New Central Bank Act, the BSP has the sole power and authority to issue currency within the Philippines. The notes and coins put into circulation are liabilities of the BSP and are fully guaranteed by the Government. They enjoy legal tender power.