Total assets of large Philippine banks reach P12.2 trillion in 2016

The Philippine banking industry is growing in tandem with the economy, a development that is reflected in the total assets of the top ten banks at P9.970 trillion in 2016.

Data from the Bangko Sentral ng Pilipinas (BSP) showed the total assets of the universal and commercial banks reached P12.301 trillion as of end-2016.

Supportive banking system

"It is very reflective of the fact that the banking system is supportive of the government's economic plans," Alexander C. Escucha, Senior Vice President of China Banking Corp., said.

Escucha noted there seems to be enough funds in the Philippine financial system to finance the government's ambitious infrastructure development plan.

"I think if you look at the yearly budget, Secretary Diokno would not allocate such amount 'pag wala namang funds," he said.

In February, Budget and Management Secretary Benjamin M. Diokno told GMA News Online how the government intends to fund fiscal spending on infrastructure. "The bulk will be tax-financed, others will be debt-financed."

The Duterte administration plans to spend as much as 7 percent of gross domestic product (GDP) on infrastructure development the later part of its term, or P8.2 trillion over the next six years. Around P860.7 billion has been allocated to large-scale projects this year.

"The state of our infrastructure is really behind our ASEAN (Association of Southeast Asian Nations) neighbors already. Even if there's a deficit, if it's for infrastructure you're spending it for the right reason," Escucha said.

The government intends to grow the economy by 6.5 to 7.5 percent this year. — With Jannielyn Bigtas/VDS, GMA News