Total assets of the Philippine banking system grew by nearly 12% year-on-year in April, driven by sustained credit demand and strong liquidity.
Data from the Bangko Sentral ng Pilipinas (BSP) showed the banking sector’s total resources reached P30.1 trillion, an 11.8% expansion from the P26.9 trillion recorded in the same month last year. The figure, however, marked a slight decline from the P30.3 trillion posted in March.
“The slight dip in bank assets in April is more of a technical pullback than a concern —after the usual quarter-end buildup in March, banks tend to rebalance as liquidity normalizes, government deposits are drawn down, and market valuations adjust,” Jonathan Ravelas, senior adviser at consultancy Reyes Tacandong & Co, said in a message.
“The bigger picture remains very constructive: a PHP30 trillion banking system, up 12% year-on-year, tells us liquidity is strong, credit is flowing, and the financial sector is actively supporting growth,” Ravelas added.
Analysts expect banking assets to expand further in the second half of the year, supported by loan disbursements for infrastructure, corporate capital expenditure, and consumer credit as domestic inflation pressures ease.
“Bottom line: short-term fluctuations are normal, but the trend is clearly upward —and that’s a good signal for the economy,” Ravelas said.
