The activities of any well operating financial system are many, but they can be summarized as intermediating payments, converting savings into lending usually through maturity transformation, and managing risk. However, to my knowledge, there are no clear indicators of what normal functioning is meant to be, which makes this qualification subjective, as it calls for the judgment of the observer or the policy maker.
In the medium to long run, containment of the virus should lead to the resumption of business activities and economic growth which should, in turn, encourage private sector investment and lending activities. The liquidity injection from BSP measures is estimated at about PHP1.3 trillion, equivalent to 6.7 percent of GDP.