On the banking sector, the Philippine banking system remains sound and stable. Preliminary data as of end-November 2021 show that total assets of the banking system grew by 7.0 percent year-on-year to P20.4 trillion amid improving economic activity. Asset expansion was mainly funded by deposits, which increased by 9.2 percent to P15.8 trillion.. Banks remain profitable.
1 Nonetheless the shift from flow to stock debt reduction was a major change, in part because budget accounting in some countries made stock reduction more difficult politically – and in part no doubt because once the principle of not reducing the stock of debt was breached, there was only one logical resting point for the process.