As of end-September, the Philippine banking system’s assets grew year-on-year by 7.2 percent, deposits by 8.8 percent, loan portfolio by 2.6 percent, and net profit by 35.0 percent. Moreover, non-performing loans remain manageable, capitalization stays above the regulatory requirement, and liquidity is ample.
Following the government’s recent shift in strategy to contain COVID-19—from imposing widearea lockdowns to granular quarantines—there has been a substantial improvement in the country’s COVID situation. 1/4  BIS central bankers' speeches  Daily confirmed cases stood at 1,297 last November 18, significantly down from the peak of 26,303 last September 11. Against this backdrop, we expect the economy’s recovery to gain more traction.