Since then, to damp the house pricecredit cycle that can lead to a housing crisis, countries worldwide have worked to create or expand existing macroprudential policies that would, in principle, limit credit growth and the rate of house price appreciation.15 Most macroprudential policies focus on borrowers. Loan-to-value (LTV) and debt-to-income (DTI) ratio limits aim to prevent borrowers from taking on excessive debt.
The growth in the banking system’s assets was supported by the 6.3 percent growth in deposits amounting to P12.6 trillion as of end-February 2019. The deposits are mostly peso-denominated and in the form of savings account which are considered as stable funding source. Albeit slower compared to the previous year, the decline in deposit growth rate is matched by the increase in bond issuances.