Assets of the Philippine banking system continued to expand to P16.4 trillion by end-November 2018, attributed mainly to deposit growth. Most of these deposits were deployed to lending for productive activities. Loan quality remains satisfactory as banks continue to adhere to sound credit underwriting standards. Meanwhile, capitalization continues to build up, with capital ratios remaining well above national and international thresholds.
Overall, amidst the challenges of 2018, the Philippine economy has remained strong and robust. It continues to live-out its growth narrative. Congratulations everyone. But we shouldn’t also overlook the fact that 2018 was also an exceptional year in pursuit of bold financial sector reforms. We introduced several refinements in the Interest Rate Corridor (IRC) system which provided BSP with greater operational flexibility.