Domestic liquidity conditions remains ample to finance the requirements of a growing economy. Bank lending is upbeat and loans continue to flow into the country’s productive sectors such as wholesale and retail trade, motor repair; manufacturing; electricity, gas and water utilities; financial services; and real estate.
The level of non-performing loans (NPLs) has been relatively flat since 2008 despite the continued uptrend of total loan portfolios (TLP). The Philippine banking system’s non-performing loan ratio (NPL) stayed low at 2.0 percent of total loans as of end-August 2017. This is fully covered as NPL coverage ratios registered at 114.1 percent. Philippine banks have developed a good ability to absorb losses.