Manila: Total assets of the Philippine banking system increased by over 10 percent in July, as data from the Bangko Sentral ng Pilipinas (BSP) indicated a rise to PHP30.71 trillion compared to PHP27.74 trillion in the same month the previous year.

According to Philippines News Agency, the figures for July showed a decline from the PHP31.12 trillion recorded in June. Rizal Commercial Banking Corporation chief economist Michael Ricafort attributed this decrease to reduced working days and economic activities, primarily due to weather-related disruptions.

Ricafort noted that the decline might also be linked to financial market volatility driven by conflicts in the Middle East and the impact of higher bad loans. Despite these challenges, he emphasized that the financial sector remains supportive of growth and continues to be strong and sound.

Reyes Tacandong and Co. Senior Adviser Jonathan Ravelas echoed similar sentiments, highlighting that the banking sector is well-capitalized and liquid. He asserted that the sector remains supportive of economic growth despite facing external uncertainties and softer global economic conditions.