Manila: Total assets of the Philippine banking system went up by almost 12 percent in April this year, data from Bangko Sentral ng Pilipinas (BSP) showed. Latest data showed that the banking system's total assets reached PHP30.1 trillion in April, higher by 11.8 percent than the PHP26.9 trillion recorded in the same month last year. The total assets during the month, however, were slightly lower than the PHP30.3 trillion recorded in March this year.

According to Philippines News Agency, the slight dip in bank assets in April is more of a technical pullback than a concern, as explained by Reyes Tacandong and Co. Senior Adviser Jonathan Ravelas in a Viber message. After the usual quarter-end buildup in March, banks tend to rebalance as liquidity normalizes, government deposits are drawn down, and market valuations adjust.

Ravelas highlighted that the bigger picture remains very constructive, with a PHP30 trillion banking system up 12% year-on-year. This indicates that liquidity is strong, credit is flowing, and the financial sector is actively supporting growth. He forecasts that in the coming months, bank assets will likely continue to expand at a healthy pace, driven by lending to infrastructure, businesses, and consumers, especially as inflation eases and rates eventually come down.

Ravelas concluded, "Bottom line: short-term fluctuations are normal, but the trend is clearly upward - and that's a good signal for the economy."